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Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?

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Bitcoin

On-chain data shows the Bitcoin coinbase premium gap has improved recently and is now approaching a neutral value, suggesting the selling pressure may be drying up.

Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative

As pointed out by an analyst in a CryptoQuant post, the selling pressure from US investors seems to have reduced in recent days.

The “Coinbase Premium Gap” is an indicator that measures the difference in the Bitcoin prices listed on crypto exchanges Coinbase (USD pair) and Binance (USDT pair).

The quant notes that US investors are known to use the Coinbase platform, especially high-net entities and institutions.

When the value of this metric is positive, it means the price on Coinbase is higher at the moment. Such a trend suggests there has been buying from US investors recently.

Related Reading | Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?

On the other hand, a negative premium gap implies there has been some selling on the crypto exchange as the price is lesser than on Binance.

Now, here is a chart that shows the trend in the Bitcoin Coinbase premium gap over the year 2022 so far:

The value of the metric looks to be negative right now | Source: CryptoQuant

As you can see in the above graph, the Bitcoin Coinbase premium gap has been negative in the last couple of months.

During the LUNA crash, it reached a highly red value of $131, which means there was some heavy selling from US investors then.

During the consolidation period that followed, as well as during the latest crash, the value of the indicator moved sideways around a negative $20.

Related Reading | Is Bitcoin Like Buying Google Early? Check Out The Shocking Comparison

Over the last few days, however, the trend seems to have changed and the premium gap is now observing some upwards movement.

While the indicator still has a negative value, it’s quite close to zero now as the gap between Coinbase and Binance stands at just -$5.

This shows that the selling pressure from US investors has been dying down recently, a sign that could prove to be bullish for the price of Bitcoin.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.2k, up 11% in the last seven days. Over the past month, the crypto has lost 28% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

Looks like the value of the crypto has been going up over the last few days | Source: BTCUSD on TradingView

Since the low below $18k, Bitcoin has been trying to gradually make some recovery. However, the crypto is currently finding it difficult to leave the $21k level.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Bitcoin Looses Ground While Dogecoin Metrics Soar

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Bitcoin Looses Ground While Dogecoin Metrics Soar

The cryptocurrency market has been getting frequent price movements recently with meme coins like Dogecoin minting gains. Some of the significant assets made an uptrend within the past two weeks. However, most of them couldn’t sustain the bullish trend for long. Hence, they have experienced a slight drop in prices this week.

Bitcoin is among the assets that have shown high volatility in the past few days. But it seems to have flattened out at around the $24,000 region. Dogecoin, on its part, is recording a progressive increase in value. As a result, DOGE stands top among other meme coins, gaining momentum. Unfortunately, the story is not pleasant for most altcoins as most are stagnating in their prices today.

Bitcoin got quite a swing in its price over the past few days. Though it later halted during the weekend, this was after some fluctuations in its value.

The price of Bitcoin initially rose to $25,000, a new 2-month high. The rise seemed difficult for the token to ensure its sustainability and had to drop. However, it later surged upward within hours as the price rallied to about $25,200. This marked the highest point for BTC since the middle of June.

Bitcoin Falls But Dogecoin Gains Momentum

With every passing hour, the BTC price started retracting. The value finally gave up more than $1,000 to remain beneath the $24,000 mark. Since then, Bitcoin’s trading price has been hovering below the $24,000 region as the token keeps its stagnant stance. Currently, BTC boasts a market cap of about $450 billion while maintaining a 40% dominance over the altcoins.

Dogecoin has kept its lead as the first in existence and dominance when it comes to meme coins. However, DOGE is taking a different route.

Dogecoin takes a bow and falls by 2% on the chart l Source: DOGEUSDT on TradingView.com

The leading meme coin has gained over 8% in value in a single day. The price of DOGE has surged up to $0.08 and remains on top above several other meme coins and altcoins.

Price Performance of Altcoins

For Ethereum, the price is seeing a more positive move in an upward trend. Ether had jumped to its 74-day peak to around $2,050. The sentiment for the global second largest cryptocurrency is recently paving the way for its price performance.

This is linked to the rumor concerning its upcoming blockchain upgrade, the Merge. Despite its sudden rise within the past few days, ETH later dropped in price and is presently trading around the $1,900 region.

For other altcoins, the movement has not been so easy. Most of them have been fluctuating throughout the weekend and even on Monday. Some of them have stalled at certain marks.

There were no unusual moves for Ripple, BNB, Shiba Inu, Polkadot, Cardano, and Avalanche. From the mid-cap and lower altcoins, Monero had the best performance. Its token, XMR, made a 5% increase to hit the $170 trading.

Featured image from Pixabay and chart from TradingView.com
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Owners of Meebits and CryptoPunk Can Now Transact Using NFTS

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Owners Of Meebits And Cryptopunk Can Now Transact Using Nfts