An analyst explained that the recent trend in the Bitcoin Coinbase Premium Gap suggests a significant change in the asset’s structure.
Bitcoin Coinbase Premium Gap Remained Negative
In a new publish On X, analyst Maartunn discussed how the Bitcoin Coinbase Premium Gap is still negative. The “Coinbase Premium Gap” here refers to a metric that tracks the difference between Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
The value of this indicator provides hints about how the behavior of the former’s user base currently differs from that of the latter platform.
Below is the chart shared by the analyst that reveals the Bitcoin Coinbase Premium Gap trend since the beginning of the year.
The value of the metric seems to have been quite red in recent days | Source: @JA_Maartun on X
As the chart shows, the Bitcoin Coinbase Premium Gap was mostly positive as Bitcoin moved from $44,000 past the $73,000 level.
This would imply that the exchange’s listed price was higher than that of Binance during this period. This trend naturally suggests that the buying pressure on the former was greater than on the latter.
Coinbase is widely known for being the preferred platform for US-based institutional investors, while Binance has global traffic. Thus, the positive green values of the premium would be if these large American entities were buying and supporting the rally.
Recently, however, the value of the indicator turned negative as these investors began to sell. Since then, the metric has continued to assume such values. Along with this sell-off, the price of BTC has seen a notable decline.
The Bitcoin Coinbase Premium Gap followed a similar pattern during the first month of the year. In the first 10 days of January, the metric was positive, as purchases occurred in anticipation of the spot exchange-traded funds (ETFs). Even so, after the approval of ETFs, the indicator became negative.
The red premium values were held for a few weeks, during which the cryptocurrency’s price struggled. Based on this pattern and the recent trend, it appears that US institutional traders have driven the price action this year.
As such, as long as the current bearish structure exists in the Bitcoin Coinbase Premium Gap, it is possible that the price will not be able to accumulate much upward momentum.
BTC Price
At the end of the Coinbase Premium Gap positive streak, Bitcoin managed to reach a new all-time high above $73,800, but as traders began selling on the platform, the coin fell nearly 9%, with its price now trading. about $67,300.
Looks like the price of the coin has been going down over the last few days | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, CryptoQuant.com, chart from TradingView.com
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