Bitcoin Coinbase Premium Gap data could indicate which part of the market was driving the bullish price action over the weekend.
Bitcoin Coinbase Premium Gap saw negative declines over the weekend
In a CryptoQuant Quicktake article, an analyst discussed the recent Bitcoin Coinbase Premium Gap trend. “Coinbase Premium Gap” refers to a metric that tracks the difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair).
When the indicator value is positive, it means that the asset is trading at a higher value on Coinbase than on Binance. Such a trend implies that users of the former participate in a higher amount of purchases or a lower amount of sales than the latter.
On the other hand, the metric being below zero suggests that Binance might be witnessing higher buying pressure as the price is higher there than on Coinbase.
Now here is the chart shared by the quant that shows the Bitcoin Coinbase Premium Gap trend over the weekend:
The value of the metric appears to have been positive over the last few days | Source: CryptoQuant
As the chart above shows, the Coinbase Premium Gap Bitcoin has remained in the positive zone recently, but a few spikes towards the negative zone stand out. Interestingly, both of these spikes preceded some rise in the price of the cryptocurrency, implying that the buying spree that occurred on Binance was responsible for these rises.
In addition to these spikes, the market has recently seen ever-increasing buying pressure from Coinbase users, just like most other bull runs this year. Coinbase’s primary traffic is US investors, particularly large institutional entities, while Binance hosts a more global user base. As such, the Coinbase Premium Gap reflects how the behavior of US-based whales differs from that of global investors.
By the time of the US presidential election results, the indicator had seen a jump to significant positive levels as Coinbase users reacted to the America-centric news.
While Coinbase users have been in the driver’s seat ever since, Binance whales have not entirely lost their relevance, as shown by the significant effect on prices over the weekend.
It now remains to be seen how the indicator will develop in the near future as the BTC rally unfolds and whether further falls into negative territory will take place.
BTC Price
Bitcoin briefly surpassed the $82,000 level earlier today, setting a brand new all-time high. Since this high, the coin has seen a slight pullback 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 of Dall-E, CryptoQuant.com, chart from TradingView.com
