bitcoin price has seen a rise above the $71,000 level over the past day as buyers seem to have returned to Coinbase.
bitcoin Coinbase Premium has witnessed a huge positive surge
As CryptoQuant author Axel Adler Jr explains in a x.com/AxelAdlerJr/status/1798059935319920940″ target=”_blank” rel=”noopener nofollow”>mail In x, the btc Coinbase Premium index has recorded a high value recently. “Coinbase Premium Index” refers to an indicator that tracks the percentage difference between bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price of the cryptocurrency listed on Coinbase is higher than on Binance at the moment. Such a trend implies the presence of greater buying pressure (or simply less selling pressure) in the first exchange than in the second.
On the other hand, the fact that the indicator is negative implies that a greater amount of selling may be happening on Coinbase than on Binance at the moment, which has pushed the price of the former to a lower value.
Now, here is a chart showing the trend in the Coinbase Premium bitcoin Index over the past few weeks:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-Surpasses-71000-as-Coinbase-Premium-Sees-Green-Spike.jpeg" alt="bitcoin Premium Index Coinbase” width=”2048″ height=”1152″/>
The value of the indicator seems to have spiked quite high recently | Source: x.com/AxelAdlerJr/status/1798059935319920940/photo/1" target="_blank" rel="noopener nofollow">@AxelAdlerJr on x
As shown in the chart above, the Coinbase bitcoin Premium Index has been mostly at negative levels over the past few weeks. Before this red streak, the metric had gone through a phase of positive levels. Interestingly, the price of the cryptocurrency had risen along with those green values. This would imply that buying pressure on Coinbase may have helped fuel the rally.
Coinbase is widely known for being the platform of choice for US-based institutional entities, while Binance hosts more global traffic. As such, the index value may provide clues as to how the behavior of these American whales differs from that of the rest of the world.
This year, these institutional investors have taken center stage in the bitcoin market with the approval of spot exchange-traded funds (ETFs), whose movements are reflected in the price of btc. The above pattern of potential buying pressure from these large US investors driving the rally is just one example of this trend seen at different times of the year.
As mentioned above, what followed this accumulation were negative values of the Coinbase Premium index in the last two weeks or so. While this selling pressure has not caused any significant bearish effects on bitcoin, the coin has not yet been able to make any further bullish moves.
Perhaps a ray of hope appeared the previous day, as the indicator recorded a large positive spike. It is currently unclear whether this will lead to another buying spree like last month or if this is just a temporary deviation like the two short-lived spikes already witnessed last week.
Whatever the case may be, however, bitcoin has been able to enjoy some bullish momentum over the past 24 hours, likely at least in part due to this buying pressure.
btc Price
In this latest new surge, bitcoin has so far been able to rise to the $71,300 level. Now it only remains to be seen how long this streak can continue.
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Looks like the price of the asset has seen a surge over the last few days | Source: BTCUSD on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
