On-chain data shows the Bitcoin coinbase premium gap has improved recently and is now approaching neutral value, indicating selling pressure could dry up.
Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative
As indicated by analysts at CryptoQuant sendselling pressure from U.S. investors appears to have eased in recent days.
The “Gap Premium Coinbase”Is an indicator that measures the difference in the price of Bitcoin listed on the crypto exchanges Coinbase (USD pair) and Binance (USDT pair).
The number notes that U.S. investors are known to use the Coinbase platform, particularly high-net entities and institutions.
When the value of this metric is positive, it means the price on Coinbase is higher at this time. The trend suggests that there have been buying from US investors recently.
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On the other hand, the negative premium gap indicates there are few sales on crypto exchanges because the price is lower than Binance.
Now, here is a chart showing the trends in Coinbase’s Bitcoin premium gap over 2022 to date:
The value of the metric looks to be negative right now | Source: CryptoQuant
As you can see in the chart above, Coinbase’s Bitcoin premium gap has been negative in the last few months.
During LUNA crashit reached a highly reduced value of $ 131, which means there was some heavy selling from US investors then.
During the next consolidation period, as well as during the most recent crash, the value of the indicator tilted around $ 20 negative.
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However, over the past few days, the trend appears to have changed and the premium gap has now had some upward movement.
While the indicator still has a negative value, it is now close to zero because the gap between Coinbase and Binance is only – $ 5.
This indicates that the selling pressure from US investors has died down recently, a sign that could prove to be bullish for the price of Bitcoin.
Price BTC Kab
At the time of writing, buy Bitcoin floats around $ 21.2k, up 11% in the last seven days. Over the past month, crypto has lost 28% of its value.
The chart above is the visual interface of Coinlancer exchange rates over the past 5 days.
Looks like the value of the crypto has been going up over the last few days | Source: BTCUSD on TradingView
Since falling below $ 18k, Bitcoin has been trying to gradually make a recovery. However, crypto is now finding it difficult to leave the $ 21k level.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com