Bitcoin has experienced a noteworthy change in structure, according to an analyst’s explanation of the Bitcoin Coinbase Premium Gap. This gap, which measures the difference in Bitcoin prices between Coinbase and Binance, has remained negative in recent times.
The graph provided by the analyst demonstrates that the Bitcoin Coinbase Premium Gap had predominantly been positive while Bitcoin surged from $44,000 to over $73,000. This indicated that buying pressure on Coinbase was greater than on Binance, implying significant support from US-based institutional investors.
However, the recent negative premium values suggest a shift in sentiment as these investors began selling instead. This selling pressure has continued, leading to a decline in the BTC price.
A similar pattern was observed earlier this year, where the Bitcoin Coinbase Premium Gap initially turned negative after the approval of spot exchange-traded funds (ETFs). This negative trend persisted for weeks, coinciding with a period of struggle for the cryptocurrency price. Based on this historical pattern and recent trends, it appears that American institutional traders have been driving the price action this year.
Considering the current bearish structure of the Bitcoin Coinbase Premium Gap, it is possible that the price will face challenges in gaining significant upward momentum.
As a result of increased selling on the platform, Bitcoin has dropped almost 9% from its all-time high above $73,800 and is currently trading around $67,300.