Bitcoin is trading around $107,000 after its recent flash crash, maintaining stability to prevent a further decline, but has yet to return to trading above $110,000. Notably, popular cryptocurrency analyst Titan of Crypto shared a detailed analysis of the Gaussian channel on X, which indicates that Bitcoin’s macro bullish structure remains intact despite short-term variability. His post, accompanied by a Bitcoin price chart, shows how Bitcoin’s position relative to the Gaussian Channel provides a clear picture of the ongoing cycle.
Bull market intact on the Gauss Channel
Cryptocurrency titan he noticed it Bitcoin being placed above the Gaussian Channel indicates strength in the long-term trend. As shown in the weekly candle price chart below, the green channel corresponds to bullish phases, while the red areas represent bear markets, with the 2022 bear market being a prime example.
At the time of writing, the upper band is around $101,300 and is trending upwards. Therefore, Bitcoin’s price action around $107,000 means that it has not yet broken into the Gaussian channel and its overall market structure is still solid. From this we can conclude that Bitcoin’s current pullback from its October 6 historical high above $126,000 is only a ephemeral pause as part of a larger bull market.
Bitcoin Gaussian Channel. Source: Titan of Crypto on X
However, while the Gauss Channel reading looks favorable, Titan of Crypto noted that the indicator should not be treated as a trade trigger. “This is not a buy signal, it is a macro context indicator” – he stated. Being above the Gaussian channel does not necessarily mean buying more. This simply means that the bull market structure is still intact.
The Gaussian channel works best combined with other indicators such as trading volume, moving averages and on-chain accumulation trends to confirm directional dynamics.
Coinbase Premium Vulnerability Turns Red
Speaking of other indicators, on-chain data from CryptoQuant shows that the Coinbase Premium Gap, an indicator that compares the price of Bitcoin on Coinbase to other exchanges, has turned red. As shown in the chart below, Coinbase’s premium gap dropped sharply from a positive premium level above +60 at the start of the week to just -40 as Bitcoin’s price fell to $101,000.
Bitcoin: Coinbase Premium Vulnerability
Interestingly, the Coinbase premium gap has increased to around -10 at the time of writing, which means US investors have begins to gain in value again. This could be seen as a bullish signal as similar declines in US demand were seen between March and April before Bitcoin’s price eventually surged over 60% to modern all-time highs.
However, the Coinbase Premium Red Vulnerability itself is not decisive. It should be interpreted together with others data points including ETF inflows, trading volume, liquidity and derivative funding rates. At the time of writing, Bitcoin is trading at $107,120.
Featured image from Vecteezy, chart from TradingView
