Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?
June 25 2022 - 3:00PM
NEWSBTC
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. Bitcoin Coinbase Premium Gap
Close To Zero, But Still Negative As pointed out by an analyst in a
CryptoQuant post, the selling pressure from US investors seems to
have reduced in recent days. The “Coinbase Premium Gap” is an
indicator that measures the difference in the Bitcoin prices listed
on crypto exchanges Coinbase (USD pair) and Binance (USDT pair).
The quant notes that US investors are known to use the Coinbase
platform, especially high-net entities and institutions. 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. Related Reading | Bitcoin Whale
Presence On Derivatives Still High, More Volatility Ahead? 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. Now, here is a chart that shows the trend in the Bitcoin
Coinbase premium gap over the year 2022 so far: The value of the
metric looks to be negative right now | Source: CryptoQuant As you
can see in the above graph, the Bitcoin Coinbase premium gap has
been negative in the last couple of months. During the LUNA crash,
it reached a highly red value of $131, which means there was some
heavy selling from US investors then. During the consolidation
period that followed, as well as during the latest crash, the value
of the indicator moved sideways around a negative $20. Related
Reading | Is Bitcoin Like Buying Google Early? Check Out The
Shocking Comparison Over the last few days, however, the trend
seems to have changed and the premium gap is now observing some
upwards movement. While the indicator still has a negative value,
it’s quite close to zero now as the gap between Coinbase and
Binance stands at just -$5. 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. BTC Price At the time
of writing, Bitcoin’s price floats around $21.2k, up 11% in the
last seven days. Over the past month, the crypto has lost 28% in
value. The below chart shows the trend in the price of the coin
over the last five days. Looks like the value of the crypto has
been going up over the last few days | Source: BTCUSD on
TradingView 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. Featured image from
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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