According to on-chain data, the Bitcoin coinbase premium gaps have increased in recent months and are now at a neutral point. This suggests that selling pressure is decreasing.
Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative
A CryptoQuant analyst noted that selling pressure by US investors has slowed in the 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).
It is known that Coinbase has been used by US investors, particularly high-net institutions and entities.
If this metric has a positive value, that means Coinbase’s price is currently higher. This suggests that there have been recent purchases from US investors.
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However, the negative premium gap means there have been sales on crypto exchanges because the price is lower than Binance.
Here’s a chart showing the Bitcoin Coinbase premium gap trend over 2022.
CryptoQuant: Right now, the value of the metric seems to be low. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin Coinbase premium gap is negative over the past few months.
During the LUNA collapse, its value reached a high red level of $131. This indicates that there were heavy sales from US investors.
The indicator’s value fluctuated around $20 during both the consolidation period and the crash.
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However, over the past few days the trend has changed. The premium gap now shows some upwards movements.
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 indicates that US investors have been reducing their selling pressure, which could be a bullish sign for Bitcoin’s price.
BTC Prices
At the time of writing, Bitcoin’s price floats around $21.2k, up 11% in the last seven days. In the last month, crypto lost 28%.
Below is a chart showing the change in coin price over the past five days.
The crypto market has seen an increase in value over the last few weeks. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Bitcoin is trying to make a gradual recovery since the bottom below $18k. However, it is difficult for the cryptocurrency to move above $21k.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts