Data shows that bitcoin Coinbase Premium has plunged into red territory, which may explain why the asset's price has plummeted below $68,000.
bitcoin Coinbase Premium Index Has Turned Red
As on-chain analytics firm CryptoQuant explains in a mail On X, the btc Coinbase Premium Index fell into negative territory just hours before btc went through its correction.
“Coinbase Premium Index” here refers to an indicator that tracks the percentage difference between bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price quoted on Coinbase is higher than on Binance at the moment. This trend implies that users of the first platform buy more than those of the second.
On the other hand, negative values imply the presence of greater selling pressure on Coinbase since the price of the cryptocurrency on Binance is currently higher.
Now, here is a chart showing the trend in the Coinbase Premium bitcoin Index over the past few days:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Coinbase-Premium-turns-deep-red-the-reason-for-the.jpeg" alt="bitcoin Premium Index Coinbase” width=”2310″ height=”1018″/>
The value of the metric seems to have been negative in the past day or so | Source: CryptoQuant on X
As the chart above shows, the Coinbase Premium bitcoin Index had been positive previously. Even so, yesterday the indicator fell to the negative zone and has remained mostly within it since then.
Along with these red values of the metric, the price of the cryptocurrency has taken a heavy hit as it has fallen back to the $68,000 level. Given the close timing, high selling pressure on Coinbase may have something to do with this drawdown.
It is popularly known that Coinbase is the preferred platform for US-based institutional investors, while Binance has more global traffic, so the value of the Premium Index may reflect the difference in the behaviors of US whales and whales. global users.
In this rally, the Coinbase Premium Index has remained generally positive as large US-based entities have accumulated. Given the shift into the red, these investors may have opted to sell, prompting the fall of the currency.
It might be worth watching this indicator in the coming days. If it turns positive again for an extended period, it would be a sign that the buyers have returned and with them, so it could be an uptrend.
Regarding the latest fix, the smart money tracker look chain has noted that a Binance deposit wallet has moved $329 million worth of btc to a Binance hot wallet in the last 24 hours.
Interestingly, this same whale also moved a similar amount of bitcoin back during the correction earlier in the month, as the following chart shared by user X shows.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/1710605728_252_Bitcoin-Coinbase-Premium-turns-deep-red-the-reason-for-the.jpeg" alt="bitcoin whale” width=”2570″ height=”1188″/>
The same whale moved coins during both of the major corrections in this month so far | Source: @lookonchain on X
btc Price
At the time of writing, bitcoin is trading at around $68,100, down 4% in the last 24 hours.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Coinbase-Premium-turns-deep-red-the-reason-for-the" alt="bitcoin price chart” width=”1534″ height=”854″/>
Looks like the price of the coin has plummeted in the past day | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, CryptoQuant.com, TradingView.com chart
