By Bitcoinist - 4 months ago - Reading Time: 2 minutes
Bitcoin Coinbase Premium Gap Is Green: Why This Is Bullish
Data shows the Bitcoin Coinbase Premium Gap has notable positive values currently, something that could be bullish for the asset’s price.
Bitcoin Coinbase Premium Gap Has Been Positive Recently
As explained by CryptoQuant Netherlands community manager Maartunn in a post on X, the Coinbase Premium Gap has been leading the BTC price during the recent price range.
The “Coinbase Premium Gap” is an indicator that keeps track of the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase and Binance.
Coinbase is known to host more US-based traffic (with large institutional investors especially preferring the platform), while Binance receives a global audience. As such, the metric’s value can provide hints about the difference between the buying or selling behaviors on the two exchanges.
When the indicator has a positive value, it means that the price listed on Coinbase is more than on Binance right now. Such a trend suggests that US investors are exerting a higher amount of buying pressure on the asset than the global users currently (or alternatively, they are just selling to a lower degree).
On the other hand, a negative value suggests that American holders may be putting a higher selling pressure on BTC as the price on Coinbase is lower than on Binance.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past month:
As displayed in the above graph, the Bitcoin Coinbase Premium Gap appears to have held an interesting relationship with the price recently. “Since the start of the $42k-range, the Coinbase Premium Gap leads the price,” notes Maartunn.
When the indicator has turned red, the price has gone down, while it assuming the green value has proven to be bullish. This correlation would suggest that American investors have been driving the price action recently.
Currently, the Coinbase Premium Gap has a positive value and the metric only seems to be going further up. Bitcoin has seen a slump during the past couple of days, but if the pattern from the past month is anything to go by, then the cryptocurrency might be able to turn around with this Coinbase buying.
Checkmate, the lead on-chain analyst at Glassnode, has talked about Bitcoin from a more long-term perspective. According to the data shared by the analyst, BTC has been observing notable amounts of profit-taking recently.
However, while profits are being realized, they still remain substantially lower than what has historically been seen during both local and cyclical tops. Thus, BTC could potentially still have some distance to run, before profit-taking blows up to extreme levels.
BTC Price
At the time of writing, Bitcoin is trading at around $42,800, down 2% in the past week.
Original source: Bitcoinist