Data shows that the Coinbase Premium bitcoin Index just saw a sharp rise in the positive region, a sign that could be bullish for the btc price.
Coinbase bitcoin Premium Index Has Soared Recently
As an analyst at a CryptoQuant Quicktake <a target="_blank" href="https://cryptoquant.com/insights/quicktake/675782611b7d52236669e214-bitcoin-Plummets-But-Coinbase-Premium-Surges” target=”_blank” rel=”noopener nofollow”>post explainedThe Coinbase Premium bitcoin index has seen an increase despite the decline that the asset's price has witnessed.
“Coinbase Premium Index” refers to an indicator that tracks the percentage difference between the price of btc listed on Coinbase (USD pair) and that of Binance (USDT pair).
When the value of this metric is positive, the cryptocurrency is trading at a higher price on Coinbase than on Binance. This trend suggests that former users engage in a greater number of purchases (or lower amounts of sales) than late adopters.
On the other hand, below zero indicates that Binance users are applying greater buying pressure as btc is selling at a higher price there than on Coinbase.
Now, here is a chart showing the trend in the Coinbase Premium bitcoin Index over the last month:
<img data-recalc-dims="1" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/12/Bitcoin-Coinbase-Premium-Turns-Green-Price-Reversal-Here.png" alt="bitcoin Premium Index Coinbase” width=”1280″ height=”720″/>
The value of the metric appears to have seen a green spike recently | Source: <a target="_blank" href="https://cryptoquant.com/insights/quicktake/675782611b7d52236669e214-bitcoin-Plummets-But-Coinbase-Premium-Surges" target="_blank" rel="noopener nofollow">CryptoQuant
As the chart above shows, the Coinbase Premium bitcoin Index plunged into negative territory when the bitcoin price drop occurred. Still, its value has since recovered back to the positive region.
The temporary drop into the negative zone implies that Coinbase users were selling, potentially causing the price to plummet, but have since regained their accumulation.
On the chart, the quant highlighted what typically followed positive spikes in the Coinbase Premium index over the past month. It would appear that btc has tended to see bullish momentum while purchasing on Coinbase. This is a pattern that has continuously appeared in 2024.
Coinbase's primary traffic involves American users, especially large institutional entities, while Binance serves users around the world. As such, the Coinbase Premium Index essentially represents the difference in behavior between US-based and global whales.
The close relationship that bitcoin has shown with the Coinbase Premium Index naturally means that American institutional investors have been the drivers of the active this year.
With buying pressure seemingly returning from these entities after the pause, the cryptocurrency price may once again be poised to see a continuation of the rally.
btc Price
The last day has been red for the cryptocurrency sector as a whole, but bitcoin has emerged relatively unscathed so far, seeing a 3% drop that has taken its price to $95,000.
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Looks like the price of the coin has registered a plunge during the last 24 hours | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
