The positive Bitcoin Coinbase premium that fueled the latest rally above $70,000 has dissipated, suggesting buying has already slowed.
CryptoQuant Netherlands community manager Maartunn explained in an X post that the Bitcoin Coinbase premium gap has decreased again towards the neutral line:
“The US Trading Session starts very soon. The Coinbase Premium has returned to a neutral state, yet I’m keeping a vigilant eye on it to discern the future trajectory of Bitcoin,” posted Maartunn.
The “Coinbase premium gap” here refers to a metric that tracks the difference between BTC prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price listed on Coinbase is higher than Binance at the moment. Such a trend implies that the buying pressure on the first platform is greater than on the second platform (or, alternatively, the selling pressure there is simply lower).
On the other hand, a negative value may imply that the selling pressure on Coinbase is greater than on Binance, since the price of the cryptocurrency listed there is lower.
Bitcoin Coinbase Premium Gap Has Returned to Neutral Levels
The Bitcoin Coinbase premium gap had reached notably positive values when the latest bullish momentum in the asset’s price occurred. However, since then, the metric has fallen and its value is approaching zero. It would appear that buying pressure on the platform contributed to the increase.
The fact that the rally has slowed since the metric returned to neutral levels may add further evidence. However, this is not unnatural for this year as Bitcoin price and Coinbase Premium Gap have shown a fairly close relationship since the beginning of 2024.
Coinbase is popularly known as the platform of choice for American institutional investors, while Binance hosts more global traffic. As such, the value of the premium provides insight into how the behavior of large US-based holders differs from that of global users.
Since the Coinbase Premium Gap has been the driver of the recent price increases, buying from these institutional entities could have provided the fuel. As the value of the indicator has approached the neutral mark, it would imply that these whales have taken their foot off the accelerator.
Given the close relationship the metric and BTC price have had recently, it may be worth keeping an eye on how things will develop in the coming days. BTC may see some decline if the premium turns into the red from here. Naturally, a continuation of positive values would be a bullish signal.
BTC Price
Currently, Bitcoin is trading around the $70,100 level, up more than 11% over the past week. According to CryptoPredictions, Bitcoin started in March 2024 at $61,298.217 and is predicted to finish the month at $60,181.476. During March, the maximum forecasted BTC price is $68,213.620 and the minimum price is $46,385.262.
As of April’s forecast, CryptoPredictions points out that Bitcoin is expected to start at $60,181.476 and finish the month at $65,556.900. During April, the maximum forecasted BTC price is $68,259.996 and the minimum price is $46,416.797.
Finally, The BTC Price is forecasted for today (27.03.2024) to be in the $56,609.085 – $83,248.655 price range. Bitcoin is predicted to end today at $66,598.924.
By Leonardo Perez
