Will Bitcoin price recover soon? This popular indicator gives clues

The crypto market fell significantly as geopolitical tensions rose after Iran launched missile attacks against Israel. Bitcoin, for example, fell below $60,500 before staging a modest recovery.

Despite this, demand from US-based investors remains high, according to recent findings. This trend could provide Bitcoin with a respite from the bears.

Demand from US investors remains strong

In a post on October 3, CryptoQuant noted the possibility of a short-term rise in the price of Bitcoin.

The Coinbase Premium Index indicates a potential near-term rise in the price of Bitcoin. Following the 1-hour timeframe and comparing the 24-hour and 168-hour moving averages, CryptoQuant analyst Yonsei_dent found that a bullish indicator has emerged when the daily moving average forms a golden cross for the week.

Currently, the daily average has temporarily surpassed the weekly average, with the gap between the two narrowing, suggesting upward momentum. Historically, this pattern has led to short-term price increases, as seen on October 1, when strong demand from US investors pushed Bitcoin higher despite a correction.

The current rise in Coinbase Premium indicates a similar scenario, with growing demand from US-based investors potentially signaling a recovery in Bitcoin’s price.

Source: CryptoQuant Bitcoin sees record exits from exchanges

In addition to this bullish thesis, another CryptoQuant analysis revealed that Bitcoin has seen its largest outflow from exchanges since November 2022, indicating a shift in market sentiment.

Chain data shows a marked increase in outflows, and the 30-, 50- and 100-day moving averages reflect this trend. A significant outflow typically indicates that investors are moving their Bitcoin into private wallets, reducing supply on exchanges, which can create much-needed upward pressure on the asset’s price.

This trend often suggests that investors are confident in Bitcoin’s long-term potential, choosing to hold rather than trade, which can be a bullish indicator for future market activity.

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