The head of research at FalconX, a crypto brokerage firm, anticipates a resurgence in highly volatile upward movements for Bitcoin (BTC) in the coming months.

David Lawant, sharing his views on the social media platform X, draws parallels between the current discount on Coinbase’s BTC premium and conditions seen in August 2023, when Bitcoin traded around $25,000 before embarking on a rally to peak near $74,000.

“Is it always darkest before the dawn? Based on my analysis, the last time the Coinbase premium showed such negativity was a few months prior to the significant rally from October 2023 to March 2024.”
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Source: David Lawant/X

The Coinbase Bitcoin premium index measures the percentage difference between BTC’s price on Coinbase Pro and on Binance, with Coinbase catering primarily to US customers, including large institutions, and Binance serving a broader global clientele.

A substantially discounted Coinbase premium index indicates weak buying pressure from US investors, a trend historically coinciding with Bitcoin price bottoms.

Lawant predicts that the next few months could witness a soaring Bitcoin price, foreseeing a resurgence in interest from US investors.

“I have a feeling the next six to twelve months will be remarkable – and likely volatile. Let’s wait and watch!”

Last month, macro analyst Raoul Pal discussed how crypto is approaching the “Banana Zone,” a phase of sustained uptrend for digital assets. He pointed out that during elections, politicians often stimulate the economy with packages that increase inflation, thereby driving up prices of Bitcoin and other cryptocurrencies.

“The latter part of an election year is always a ‘banana zone’ for all assets. It consistently is. So, it’s highly probable that by autumn, things will be in full swing. How long before ETH, Bitcoin, and SOL surpass their recent highs? It could be two weeks or two months – the timing isn’t critical, but the momentum is.”

As of the time of writing, Bitcoin is valued at $62,113.

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