Bitcoin Coinbase Premium Gap Indicates Selling Pressure
An analyst has observed that the Coinbase Premium Gap, which measures the price difference between Bitcoin on Coinbase and Binance, is currently negative. A positive gap suggests higher buying pressure on Coinbase, while a negative gap indicates higher selling pressure. The chart shows that the Premium Gap has remained in deep red territory, indicating significant selling pressure from American investors. This could be a concerning sign for Bitcoin’s recovery attempt as institutional players fall behind in buying pressure. Despite a recent rebound, the cryptocurrency may face resistance due to the negative Premium Gap.
Bitcoin’s Recent Price Performance
After dropping below $39,000, Bitcoin has experienced a notable recovery and surpassed the $43,000 mark. The chart displays its performance over the past month. However, with the negative Coinbase Premium Gap, the cryptocurrency may encounter obstacles in sustaining its recovery.
Hot Take: Negative Coinbase Premium Gap Raises Concerns for Bitcoin Recovery
Data reveals that the negative Coinbase Premium Gap is currently impacting Bitcoin’s attempt at recovery. With American investors showing higher selling pressure than buying pressure, the cryptocurrency faces challenges in sustaining its rebound. The deep red values of the Premium Gap indicate significant selling pressure from institutional players, potentially hindering Bitcoin’s recovery. While it has seen a notable bounce back from its recent drop, resistance may arise due to this negative indicator. This highlights the importance of monitoring the Coinbase Premium Gap as an indicator of investor behavior and market trends.
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