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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Bitcoin Retraces Below $120,000: Is Coinbase Selling To Blame?

Keshav Verma
Keshav Verma
8 hours ago
2 mins read
Bitcoin

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Bitcoin has seen a retrace back below the $120,000 level as data shows the Coinbase Premium Gap has dropped into the negative zone.

Bitcoin Coinbase Premium Gap Has Plummeted Into The Red Region

In a new post on X, CryptoQuant community analyst Maartunn has talked about the latest trend in the Bitcoin Coinbase Premium Gap. This indicator measures the difference between the BTC price listed on Coinbase (USD pair) and that on Binance (USDT pair).

The former cryptocurrency exchange is popularly used by American investors, especially the large institutional entities, while the latter is the destination of the global investors. As such, the Coinbase Premium Gap tells us about how the buying or selling behaviors differ between US-based and foreign whales.

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When the metric has a positive value, it means the cryptocurrency is going for a higher price on Coinbase than Binance. Such a trend suggests the users of the former are applying a higher buying pressure or lower selling pressure as compared to the traders of the latter.

On the other hand, the indicator registering a negative value implies the American investors may be selling more relative to global investors, which has brought the price on Coinbase lower than on Binance.

Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past day:

Bitcoin Coinbase Premium Gap
Looks like the value of the metric has turned red | Source: @JA_Maartun on X

As displayed in the above graph, the Bitcoin Coinbase Premium Gap was above the zero mark when BTC’s recovery run to the $122,000 level occurred, indicating that US-based whales were buying and helping fuel the surge.

While BTC was at its high, however, the indicator’s value saw a sharp reversal and plunged into the negative zone. What has followed these red levels in the metric is a retrace for the coin to prices below $120,000.

Thus, it seems the trend in the Coinbase Premium Gap foreshadowed the price action. This pattern is something that has been witnessed a lot since the start of 2024, as American institutional entities have been in the driving seat.

Given the price action of the past day, it seems the influence of these investors remains strong, so the Bitcoin Coinbase Premium Gap could be worth keeping an eye on, as where it will go next may also carry hints about the cryptocurrency’s future trajectory.

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In some other news, address generation on the BTC network has reached its highest level in a year, as analyst Ali Martinez has pointed out in an X post.

Bitcoin New Addresses
The value of the metric appears to have been climbing in recent days | Source: @ali_charts on X

From the chart, it’s apparent that the daily total number of new addresses on the Bitcoin blockchain has spiked to a high of 364,126.

BTC Price

At the time of writing, Bitcoin is trading around $119,300, up around 5% over the past week.

Bitcoin Price Chart
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, CryptoQuant.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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