Is Coinbase App Rank (CBR) The Crypto Indicator You’ve Been Missing?

You’re probably already checking Bitcoin’s price, but what about the popularity of the Coinbase app? It might sound strange, but the Coinbase App Rank (CBR) can offer surprising insights into the crypto market.

CBR and Bitcoin Price: A Curious Correlation

Here’s the interesting part: high CBR often precedes peaks in Bitcoin’s price. This makes sense when you think about it. People download trading apps before buying crypto, creating a leading indicator.

Let’s dive into some data points:

• 2023 to Present: CBR has hovered around 500, acting as a temporary floor. Every spike above this level coincided with an uptrend test.

• November-December 2020: CBR surged 400 ranks (from 500 to top 100) just before Bitcoin rallied from $17k to $30k in January 2021.

• October 28, 2021: CBR hit #1 for three consecutive days, coinciding with Bitcoin’s all-time high of $69k. This peak demonstrated the extreme FOMO present at market tops.

The takeaway? A CBR above 100 could signal a temporary market top.

CBR and the Fear and Greed Index: A Powerful Duo

The correlation doesn’t end there. CBR also shows a strong relationship with the Fear and Greed Index (F&G), with minimal lag.

• When F&G surpasses 80, CBR experiences a rapid surge (e.g., from 300 to 100).
• Conversely, a sudden drop in F&G leads to a sharp CBR decline.

This highlights a common investor pitfall:

• Selling during dips: This misses out on prime buying opportunities.
• Buying during surges: This often leads to buying at market tops.

By monitoring both CBR and F&G, you can better gauge the market’s current phase and make more informed decisions.

Remember: Past performance is not indicative of future results. This analysis is for informational purposes only and not financial advice. Always conduct your own research.add_circle