Bitcoin is holding above the Gaussian channel, the bull market structure is still active
Bitcoin is selling around $107,000 after the recent flash crash, maintaining firmness to prevent further declines but it is yet to return to trading at 11,110,000. Notably, Crypto Analyst Titan of Crypto shares a detailed Gaussian channel analysis on X that points to Macro’s Macro’s Bull structure despite temporary fluctuations. His post, which was accompanied by a Bitcoin price chart, shows that Bitcoin’s position in line with the GAUSIAN channel gives a clear view of the ongoing cycle.
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The bull market is centered above the Gaussian channel
Crypto Titan he noted that Bitcoin placement above the Gaussian channel represents strength in the long-term trend. As shown in the weekly price chart below, the green channel corresponds to bullish phases, while the red regions represent bearish declines, a prime example of the 2022 bear market.
At the time of writing, the upper band is placed around $101,300 and is trending higher. Therefore, the price action of Bitcoin around $107,000 means that it is yet to enter the Gaussian channel and its entire market structure is strong. From this, it can be assumed that the current Dreabback of Bitcoin from the October 6 time high above $126,000 is only a temporary break within a major bull market.
Bitcoin Gaussian channel. Source: Crypto Titan on X
However, although reading the Gaussian channel looks good, Crypto Titan noted that the indicator should not be treated as a trading trigger. “It’s not a buy signal, it’s an indicator of macro content,” he said. Being above the Gaussian channel does not equal buying more. It just means the bull market structure is still strong.
A Gaussian channel works best When combined with other indicators Such as trading volume, leading, and on-chain accumulation trends to ensure an understandable momentum.
The coinbase premium gap turns red
Speaking of other indicators, on-chain data from Cryptoquant shows that the Coinbase Premium Gap, a price metric that compares Bitcoin on Coinbase Versus other exchanges, has turned red. As shown in the chart below, Coinbase’s Premium gap continued a sharp decline from the positive premium levels above +
Bitcoin: COINBase Premium Gap
Interestingly, the coinbase premium gap has increased to -10 at the time of writing, which means that American investors say Starting to change the intensity again. This can be seen as a bullish signal, as the same was sought for the demand of the US between March and April before keeping the price of bitcoin saved more than 60% to reach the top of certain periods.
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However, the red premium gap alone is not decisive. It should be It is translated side by side Data points, including ETF interventions, trading volume, funding levels from Derivatives. At the time of writing, Bitcoin was trading at $107,120.
Featured image from veecteezy, chart from trading
