Bitcoin's Recovery Halted as Coinbase Users Drive Selling Pressure
Bitcoin's recent recovery above $104,000 has been swiftly erased, largely attributed to persistent selling activity from users on the Coinbase exchange. This trend is evident in the consistently negative Coinbase Premium Gap, an indicator closely watched by crypto analysts.
Coinbase Premium Gap Signals Bearish Sentiment
CryptoQuant community analyst Maartunn highlighted on X that Coinbase investors are actively selling Bitcoin. The Coinbase Premium Gap, which measures the difference between Bitcoin's price on Coinbase (USD pair) and Binance (USDT pair), has remained largely negative over the past week. A negative gap suggests that Bitcoin is trading at a lower rate on Coinbase compared to Binance, implying higher selling pressure or lower buying demand from Coinbase users. Conversely, a positive gap would indicate stronger buying pressure from Coinbase users, pushing prices higher on that platform. This metric is particularly significant as Coinbase is a major platform for American institutional investors, including those involved with spot exchange-traded funds (ETFs). The sustained negative readings imply that these large U.S.-based entities may be distributing their holdings, hindering any bullish momentum.
Dormant Bitcoin on the Move and Price Outlook
Further market indicators suggest potential selling pressure from long-term holders. A recent observation revealed a significant movement of over 13,000 Bitcoin that had been dormant for 3 to 5 years. Such movements of "old tokens" often precede large sell-offs by long-term investors or "HODLers," potentially adding to downward pressure. Currently, Bitcoin is trading around $100,200, marking a nearly 9% decrease over the last week. The immediate future of Bitcoin's recovery may hinge on a return of bullish sentiment among institutional investors on platforms like Coinbase.
