Data shows that Bitcoin selling pressure on the crypto exchange Coinbase is decreasing, which could be conducive to a short-term bounce.
Bitcoin Coinbase Premium Gap Is Approaching Neutral Mark Again
As analyst Maartunn explained in a post on X, the Coinbase Premium Gap has risen since plunging into negative territory yesterday. The “Coinbase Premium Gap” here refers to a metric that tracks the difference between the Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).
When the value of this indicator is positive, it means the cryptocurrency price listed on Coinbase is greater than on Binance right now. Such a trend implies the buying pressure is higher (or the selling pressure is lower) on the former than on the latter.
On the other hand, a negative value would suggest that the selling pressure on Coinbase may be higher than on Binance, as the asset is trading for a lower value on the exchange.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past few weeks:
The value of the metric seems to have been going up over the past day | Source: @JA_Maartun on X
As displayed in the above graph, the Bitcoin Coinbase Premium Gap has been negative for the past few days, suggesting Coinbase users have been selling more heavily than Binance ones.
Coinbase is popularly known to be the preferred platform for US-based institutional investors, while Binance hosts global traffic. As such, the premium’s value can tell us about the behavior of American whales.
The recent negative values of the indicator would naturally imply that these large entities have been participating in some selling. From the chart, it’s visible that these investors also showed similar behavior earlier.
When the selling finally dropped off, and the Coinbase Premium Gap flipped, the cryptocurrency’s price rebounded in the short term. Over the past day, the indicator has shown a similar trend, as its value has now approached the neutral mark.
This may imply that the institutional traders could be done with their selling for now. “This could potentially create some short-term upside opportunity,” notes the analyst.
In some other news, the Bitcoin Open Interest, a measure of the total amount of derivatives-related positions currently open for the asset, has seen an alarming spike during the last few hours, as Maartunn has pointed out in another X post.
Looks like the value of the indicator has seen a sharp jump recently | Source: @JA_Maartun on X
Generally, an increase in open interest can lead to higher volatility in Bitcoin prices. This 9% rise has come so suddenly, so a violent liquidation event may be coming for the cryptocurrency.
BTC Price
Bitcoin has recovered over the past day as its price has now crossed the $64,800 mark.
The price of the coin appears to have shot up over the last 24 hours | Source: BTCUSD on TradingView