Data shows that the Bitcoin Coinbase Premium Gap has entered negative territory, a sign that could prove bearish for the asset’s price.
Coinbase Bitcoin Premium Gap Has Declined Recently
As CryptoQuant Community Analyst Maartunn pointed out in an article, the Bitcoin Coinbase Premium Gap saw a reversal for the first time in nine days. The “Coinbase Premium Gap” here refers to an indicator that measures the difference between the BTC price indicated on Coinbase (USD pair) and that on Binance (USDT pair).
When the value of this metric is positive, it means that the cryptocurrency is trading at a higher value on Coinbase than on Binance. Such a trend implies that users of the former apply higher buying pressure or lower selling pressure than traders of the latter.
On the other hand, the indicator being below zero suggests that it is Binance users who are participating in more purchases, as the asset is sold there at a higher rate.
Now here is the chart shared by Maartunn that shows the Bitcoin Coinbase Premium Gap trend over the past month:
As seen in the chart above, the Bitcoin Coinbase Premium Gap reached a notable positive level earlier in the week, suggesting that Coinbase users were accumulating. Alongside this rise in the metric, BTC has seen a recovery.
In recent years, the cryptocurrency spot value correlating with the Coinbase Premium Gap has often been observed. The reason could be because US institutional entities, which prefer to use Coinbase, have recently seen their presence grow in the digital asset sector.
The chart shows that although the Coinbase Premium Gap increased earlier, its value has recently declined to a level just below zero. This could indicate that American whales have abandoned their accumulation. Naturally, if a real fall into the negative zone occurs now, BTC could end up feeling a bearish effect, similar to the pullback in the second half of March.
However, even though this indicator move has occurred, Bitcoin has actually been rising so far.
BTC surpasses $76,000 for the first time since February
Bitcoin continued its rally over the past 24 hours as its price approached the $77,000 mark before returning to $76,500.
The result of this increase was that more than $209 million in bearish Bitcoin bets were liquidated over the past day, according to CoinGlass data. Across the entire cryptocurrency derivatives industry, more than $456 million in short positions were liquidated in this window.
