Data Suggests Buying On Coinbase Behind The Bitcoin Pump


Data shows that the Bitcoin Coinbase premium gap has increased to positive values, which indicates that buying from investors in the exchange may be behind the pump to $22,000.

The distinct gap in Bitcoin Coinbase notes a sharp rise to positive values

As pointed out by an analyst at CryptoQuant MailAfter several months of negative values, Coinbase’s premium gap is now above zero.

The “Coinbase Featured Gap“It is an indicator that measures the difference between the price of Bitcoin on Coinbase Pro (the US dollar pair) and the value on Binance (the USDT pair).

Since Coinbase is commonly used by US investors (especially institutions), while Binance Being more used in other parts of the world, the difference in BTC prices between exchanges can indicate a source of buying/selling pressure.

When the value of the token gap is greater than zero, it means that the value of the cryptocurrency listed on Coinbase is currently more than that of Binance. This indicates that US investors have recently bought more compared to the rest of the world.

Related reading | Bitcoin miners are inundated, but the price has held up so far

On the other hand, negative values ​​of the scale indicate that US investors may be putting more selling pressure/less buying pressure on the market at the moment.

Now, here is a chart showing the trend in the Bitcoin Coinbase premium gap over the past two days:

Bitcoin Coinbase Premium Gap

The value of the indicator seems to have spiked up over the past day| Source: CryptoQuant

As you can see in the chart above, Bitcoin Coinbase’s distinct gap appears to have seen a spike in the past 24 hours.

The index previously had a red value for several months, but now the scale appears to be back to a positive value again.

Related reading | Rumors about the impact of Mt.Gox on the emergence of Bitcoin, will the victims get 150 thousand Bitcoin?

Also, it is clear from the chart that the latest pump in the cryptocurrency price appears to have occurred in conjunction with this rise in the premium gap.

This may indicate that buying pressure from investors in the US may be behind bitcoin attracting some fresh bullish momentum.

BTC price

At the time of writing this report, Bitcoin price It is floating around $21.6K, up 12% in the past seven days. Over the past month, the cryptocurrency has lost 31% of its value.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

Looks like the value of the crypto has surged up during the last couple of days | Source: BTCUSD on TradingView

Earlier today, Bitcoin crossed $22,000 for the first time since mid-June. Since then, the cryptocurrency appears to have fallen a bit.

Featured image from Mariia Shalabaieva on Unsplash.com, charts from TradingView.com, CryptoQuant.com



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