Data shows the Bitcoin Coinbase Premium Gap has edged into the negative territory, a sign that could prove to be bearish for the asset’s price.
Bitcoin Coinbase Premium Gap Has Declined Recently
As highlighted by CryptoQuant community analyst Maartunn in an X post, the Bitcoin Coinbase Premium Gap has seen a flip for the first time in nine days. The “Coinbase Premium Gap” here refers to an indicator that measures the difference between the BTC price listed on Coinbase (USD pair) and that on Binance (USDT pair).
When the value of this metric is positive, it means the cryptocurrency is trading at a higher value on Coinbase than Binance. Such a trend implies users of the former are applying a higher amount of buying pressure or lower amount of selling pressure than the latter’s traders.
On the other hand, the indicator being below the zero mark suggests Binance users are the ones participating in more buying as the asset is going for a higher rate on there.
Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin Coinbase Premium Gap over the past month:
As displayed in the above graph, the Bitcoin Coinbase Premium Gap surged to a notable positive level earlier in the week, suggesting that Coinbase users were accumulating. Alongside this rise in the metric, BTC observed a recovery rally.
In recent years, the cryptocurrency’s spot value correlating with the Coinbase Premium Gap is something that has often been observed. The reason behind this could be down to the fact that American institutional entities, which prefer to use Coinbase, have lately seen their presence grow in the digital asset sector.
From the chart, it’s visible that while the Coinbase Premium Gap shot up earlier, its value has declined to a level just below zero recently. This could indicate that the US whales have dropped their accumulation. Naturally, if a proper drop into the negative zone now occurs, BTC could end up feeling a bearish effect, similar to the pullback from the second half of March.
Though, while this development in the indicator has occurred, Bitcoin has actually surged so far.
BTC Breaks Past $76,000 For The First Time Since February
Bitcoin furthered its recovery during the last 24 hours as its price approached the $77,000 mark before retracing back to $76,500.
A result of this surge has been that more than $209 million in bearish Bitcoin bets have been liquidated over the past day, according to data from CoinGlass. In the cryptocurrency derivatives sector as a whole, over $456 million in short positions have been flushed inside this window.
