Data shows that the Bitcoin co-currency high-level gap has been increasing recently, suggesting that large U.S. entities may be supporting price increases.
Bitcoin is green recently
As analysts explained in an encrypted quick post, Coinbase Premium Gap has been gradually rising over the past few weeks. “Coinbase Premium Gap” is an indicator that measures the difference between the Bitcoin price and Binance (USDT pair) listed on Coinbase (USD pair).
When the value of the indicator is positive, this means that the transaction price of the cryptocurrency is higher than that of Binance. Such a trend means that the former has higher buying pressure (or lower sales pressure) than the latter.
On the other hand, the indicator is negative, indicating that Coinbase may face net sales pressure as the price of the coin is below two dollars.
Now, here is a chart showing the trend of the Bitcoin co-currency premium gap over the past few months:
The value of the metric appears to have been heading up in recent days | Source: CryptoQuant
As shown in the above chart, the Bitcoin co-currency rating gap was negative earlier, suggesting that users on the platform may exert greater sales pressure than Binance Traders. In addition to the value of these reds, the price of assets has also dropped.
Then, in mid-April, the metric will reverse to the positive zone, and it is interesting that the reason for the purchase pressure accompanied by Coinbase is the rally in cryptocurrency.
So it seems that the asset’s price has shown some correlation with Coinbase Premium Gap recently. This is not a particularly new trend, as the pattern of the past year has actually witnessed a lot.
Coinbase is the preferred platform for American investors, especially large entities such as institutional traders. On the other hand, Binance has global traffic. Therefore, the indicator can be considered as a representation that shows how American whales behave differently from other departments.
Recently, Coinbase Premium Gap has been upgrading within the positive zone, which may indicate that large U.S.-based holders have been involved in the accumulation.
This growth is only further promoted as prices have returned to their all-time highest (ATH) levels. Given the relevance of US institutional investors to Bitcoin holdings over the past year, this support can naturally be a bullish signal of anti-rally rally sustainability.
That said, despite the recent long purchases on Coinbase, premiums can still be monitored in the near future, as it may sometimes be possible to quickly turn in the cryptocurrency space.
BTC price
Bitcoin has already had a pullback since $110,500 as its price has recovered to $108,900.
The trend in the BTC price during the past five days | Source: BTCUSDT on TradingView
Featured images from dall-e, charts from cryptoquant.com, tradingview.com
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.
