Bitcoin Coinbase Premium Gap data can indicate which part of the market was behind the bullish price movement over the weekend.
Bitcoin Coinbase Premium Gap saw negative declines over the weekend
In CryptoQuant Quicktake mailan analyst discussed the recent trend in Bitcoin Coinbase Premium Gap. “Coinbase Premium Gap” refers to a metric that tracks the difference between the Bitcoin price listed on Coinbase (USD pair) and the Binance price (USDT pair).
When the indicator value is positive, it means that the asset is trading at a higher value on Coinbase compared to Binance. This trend indicates that users of the former engage in a greater amount of buying or a smaller amount of selling compared to the amount of the latter.
On the other hand, having the gauge below zero indicates that Binance may see a greater amount of buying pressure as the price there is higher than that of Coinbase.
Now, here is the chart shared by Quantity that shows the trend in Bitcoin Coinbase Premium Gap over the weekend:
The value of the metric appears to have been positive over the last few days | Source: CryptoQuant
As shown in the chart above, Bitcoin Coinbase Premium Gap has remained within positive territory recently, but there are some clear spikes towards negative territory. Interestingly, both of these spikes preceded some degree of bullish rally in the price of the cryptocurrency, implying that the buying spree that occurred on Binance was responsible for the spikes.
Beyond these rallies, the market has recently seen consistently higher buying pressure coming from Coinbase users, just like most other bull phases this year. Coinbase’s main traffic is US investors, especially large institutional entities, while Binance hosts a more global user base. As such, the Coinbase Premium Gap reflects how the behavior of whales in the US differs from that of global investors.
Around the time of the US presidential election results, the index saw a jump to significant positive levels, as Coinbase users reacted to America-focused news.
While Coinbase users have been in the driving seat since then, Binance whales have not completely lost their importance as the strong impact on the price over the weekend shows.
It now remains to be seen how the indicator will develop in the near future as BTC continues to rise and whether there will be further declines into negative territory.
Bitcoin price
Bitcoin briefly broke above $82,000 earlier today, setting a brand new all-time high. Since this peak, the coin has seen a slight decline to $81,900.
Looks like the price of the coin has been racing up over the last few days | Source: BTCUSDT on TradingView
Featured image by Dall-E, CryptoQuant.com, chart from TradingView.com