Bitcoin Coinbase Premium Gap Has Been Deep Red Recently
An analyst in a CryptoQuant Quicktake post pointed out that the Coinbase Premium Gap has been negative recently. The “Coinbase Premium Gap” here refers to an indicator that tracks the difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price listed on Coinbase is greater than that on Binance right now. Such a trend implies that the former platform is currently witnessing a higher buying pressure or a lower selling pressure than the latter.Looks like the value of the metric has been quite red in recent days | Source:As displayed in the above graph, the Bitcoin Coinbase Premium Gap has plunged into negative values recently, implying that the selling pressure on Coinbase has risen. Earlier, the metric had a notable positive streak, and this run coincided with a rally in the cryptocurrency’s price. The asset fell as the indicator flipped towards red, suggesting increased selling pressure may have contributed.
US-based institutional investors commonly use Coinbase, while Binance has a more global audience. As such, the Premium Gap can provide hints about American whales’ buying or selling behavior.
BTC Price
Since the visit below the $39,000 level, Bitcoin has seen a notable rebound below the $43,000 mark. The chart below shows how the coin has performed over the past month.The price of the coin appears to have been consolidating sideways recently | Source:This recovery has stood so far, but given the negative Coinbase Premium Gap, the cryptocurrency may encounter some resistance soon.