Bitcoin Coinbase Premium Gap Is Approaching Neutral Mark Again
Recent data shows that the Bitcoin selling pressure on the crypto exchange Coinbase is decreasing, which could lead to a short-term bounce in the price of the cryptocurrency. Analyst Maartunn highlighted that the Coinbase Premium Gap, a metric tracking the price difference between Bitcoin on Coinbase (USD pair) and Binance (USDT pair), has increased after previously being in negative territory.
When the Coinbase Premium Gap is positive, it indicates that Bitcoin’s price on Coinbase is higher than on Binance, signaling more buying pressure on Coinbase. Conversely, a negative value suggests higher selling pressure on Coinbase compared to Binance.
Behavior of Institutional Investors
Coinbase is favored by institutional investors in the United States, while Binance caters to a global audience. The negative values in the Coinbase Premium Gap signal that American whales are selling off their holdings. However, when the selling pressure decreases and the gap flips, there is usually a price rebound in the short term.
- The recent trend in the Coinbase Premium Gap approaching the neutral mark could signify a pause in institutional selling.
- This scenario might present a short-term opportunity for upside potential in Bitcoin’s price.
Bitcoin Open Interest Spike
In addition to the Coinbase Premium Gap, Bitcoin’s Open Interest, which measures the total value of open positions in derivatives, has seen a significant spike in the last few hours. This sudden increase in open interest could lead to higher volatility in Bitcoin prices and potentially trigger a liquidation event.
BTC Price Recovery
Bitcoin’s price has experienced a recovery in the past day, surpassing the $64,800 mark. The upward movement in price aligns with the decreasing selling pressure on Coinbase and the potential pause in institutional selling activity.
Hot Take: Bitcoin Outlook
With the Coinbase Premium Gap approaching a neutral value and the potential respite in institutional selling, Bitcoin could be primed for a short-term upward movement. Keep an eye on the Open Interest spike as it may introduce more volatility in the market but could also signal opportunities for traders amid the price fluctuations.
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