A recent report from a prominent analyst in the publication CryptoQuant Quicktake has brought new perspectives on the current situation of Bitcoin. The focus of the analysis was the “Coinbase Premium Gap”, an indicator that measures the difference between Bitcoin prices on the Coinbase and Binance cryptocurrency exchanges. This indicator has shown promising signs that suggest a possible rapid recovery in Bitcoin prices.
The “Coinbase Premium Gap” is an essential thermometer for the cryptocurrency market. When this indicator is positive, it indicates that prices on Coinbase are higher than on Binance, suggesting stronger buying pressure or weaker selling pressure on Coinbase. Negative values, on the other hand, could signal greater buying pressure on Binance.
Over the past few weeks, the Bitcoin Coinbase Premium Gap chart has revealed some notable changes. Prior to the launch of Bitcoin spot ETFs, the indicator remained positive, indicating robust buying pressure on Coinbase, a platform frequently used by US institutional investors. This positive premium may have been influenced by the constant accumulation of large entities in anticipation of ETFs.
However, shortly after this event ended, the Coinbase Premium Gap abruptly fell into negative territory, reflecting a significant increase in selling pressure from US holders. This movement coincided with Bitcoin’s first major drop after the launch of ETFs, marking the beginning of a prolonged phase of negative values in the indicator.
After this initial drop, Bitcoin experienced another sharp drop, accompanied by an increase in selling pressure on Coinbase. However, in recent days, despite further drops in BTC prices, the Coinbase Premium Gap has not reached extremely negative values. Instead, the indicator showed a brief return to neutral territory during this latest decline, suggesting that selling pressure from US institutional investors may be easing.
According to the analyst, this change in the Coinbase Premium Gap pattern indicates that although there is still selling, the intensity is not significantly greater than that of global investors using Binance. Based on this observation, the analyst states that “at the current range, there is a high probability of a rapid price recovery” for Bitcoin.
This analysis offers a glimmer of hope for Bitcoin investors, especially after the recent breakout of the $39,000 level, a low not seen since early December. The market’s next movements will be crucial to confirm whether this recovery trend will materialize.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.