On-chain data shows that the distinct hole in the Bitcoin base has improved recently and is now approaching a neutral value, indicating that the selling pressure may be draining.
Bitcoin Coinbase Premium Hole Close to Zero, But Still Negative
As pointed out by an analyst at CryptoQuant MailThe selling pressure from US investors appears to have eased in recent days.
The “Coinbase Premium GapIt is an indicator that measures the difference in the price of Bitcoin listed on the cryptocurrency exchanges Coinbase (the US dollar pair) and Binance (the USDT pair).
Quantum indicates that US investors are known to use the Coinbase platform, especially highly networked entities and institutions.
When the value of this metric is positive, it means that the price on Coinbase is higher at the moment. This trend indicates buying by US investors recently.
On the other hand, the negative premium gap indicates that there has been some selling on the crypto exchange as the price is lower than Binance.
Now, here’s a chart showing the trend in the Bitcoin Coinbase premium gap over the course of 2022 so far:
The value of the metric looks to be negative right now | Source: CryptoQuant
As you can see in the chart above, the Bitcoin Coinbase premium gap has been negative in the past two months.
during the LUNA device crashIt hit a very red value of $131, which means there was some heavy selling from US investors at the time.
During the consolidation period that followed, as well as during the last crash, the value of the index moved sideways around negative $20.
However, over the past few days, the trend appears to have changed and the premium gap is now seeing some upward movement.
While the index still has a negative value, it is very close to zero now that the gap between Coinbase and Binance is only $5.
This shows that selling pressure from US investors has faded recently, which is a potentially bullish sign for the price of Bitcoin.
At the time of writing this report, Bitcoin price It is floating around $21.2K, up 11% in the past seven days. Over the past month, the cryptocurrency has lost 28% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has been going up over the last few days | Source: BTCUSD on TradingView
Since dropping below $18K, Bitcoin is gradually trying to make some recovery. However, crypto is currently finding it difficult to leave the $21,000 level.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com