On-chain data shows the Bitcoin coinbase premium gap has improved recently and is now approaching a neutral value, suggesting the selling pressure may be drying up.<\/p>\n
Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the selling pressure from US investors seems to have reduced in recent days.<\/p>\n
The \u201cCoinbase Premium Gap\u201d is an indicator that measures the difference in the Bitcoin prices listed on crypto exchanges Coinbase (USD pair) and Binance (USDT pair).<\/p>\n
The quant notes that US investors are known to use the Coinbase platform, especially high-net entities and institutions.<\/p>\n
When the value of this metric is positive, it means the price on Coinbase is higher at the moment. Such a trend suggests there has been buying from US investors recently.<\/p>\n
Related Reading |\u00a0Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?<\/p>\n
On the other hand, a negative premium gap implies there has been some selling on the crypto exchange as the price is lesser than on Binance.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin Coinbase premium gap over the year 2022 so far:<\/p>\n\n
The value of the metric looks to be negative right now | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin Coinbase premium gap has been negative in the last couple of months.<\/p>\n
During the LUNA crash, it reached a highly red value of $131, which means there was some heavy selling from US investors then.<\/p>\n
During the consolidation period that followed, as well as during the latest crash, the value of the indicator moved sideways around a negative $20.<\/p>\n
Related Reading |\u00a0Is Bitcoin Like Buying Google Early? Check Out The Shocking Comparison<\/p>\n
Over the last few days, however, the trend seems to have changed and the premium gap is now observing some upwards movement.<\/p>\n
While the indicator still has a negative value, it\u2019s quite close to zero now as the gap between Coinbase and Binance stands at just -$5.<\/p>\n
This shows that the selling pressure from US investors has been dying down recently, a sign that could prove to be bullish for the price of Bitcoin.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.2k, up 11% in the last seven days. Over the past month, the crypto has lost 28% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
Looks like the value of the crypto has been going up over the last few days | Source: BTCUSD on TradingView<\/p>\n
Since the low below $18k, Bitcoin has been trying to gradually make some recovery. However, the crypto is currently finding it difficult to leave the $21k level.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
On-chain data shows the Bitcoin coinbase premium gap has improved recently and is now approaching a neutral value, suggesting the selling pressure may be drying up.<\/p>\n
Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the selling pressure from US investors seems to have reduced in recent days.<\/p>\n
The \u201cCoinbase Premium Gap\u201d is an indicator that measures the difference in the Bitcoin prices listed on crypto exchanges Coinbase (USD pair) and Binance (USDT pair).<\/p>\n
The quant notes that US investors are known to use the Coinbase platform, especially high-net entities and institutions.<\/p>\n
When the value of this metric is positive, it means the price on Coinbase is higher at the moment. Such a trend suggests there has been buying from US investors recently.<\/p>\n
Related Reading |\u00a0Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?<\/p>\n
On the other hand, a negative premium gap implies there has been some selling on the crypto exchange as the price is lesser than on Binance.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin Coinbase premium gap over the year 2022 so far:<\/p>\n
The value of the metric looks to be negative right now | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin Coinbase premium gap has been negative in the last couple of months.<\/p>\n
During the LUNA crash, it reached a highly red value of $131, which means there was some heavy selling from US investors then.<\/p>\n
During the consolidation period that followed, as well as during the latest crash, the value of the indicator moved sideways around a negative $20.<\/p>\n
Related Reading |\u00a0Is Bitcoin Like Buying Google Early? Check Out The Shocking Comparison<\/p>\n
Over the last few days, however, the trend seems to have changed and the premium gap is now observing some upwards movement.<\/p>\n
While the indicator still has a negative value, it\u2019s quite close to zero now as the gap between Coinbase and Binance stands at just -$5.<\/p>\n
This shows that the selling pressure from US investors has been dying down recently, a sign that could prove to be bullish for the price of Bitcoin.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.2k, up 11% in the last seven days. Over the past month, the crypto has lost 28% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
Looks like the value of the crypto has been going up over the last few days | Source: BTCUSD on TradingView<\/p>\n
Since the low below $18k, Bitcoin has been trying to gradually make some recovery. However, the crypto is currently finding it difficult to leave the $21k level.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-2021","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/2021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=2021"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/2021\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=2021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=2021"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=2021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}