Bitcoin Coinbase Premium Gap Approaches Zero, Selloff Ending?

On-chain data shows the Bitcoin coinbase premium gap has improved recently and is now approaching a neutral value, suggesting the selling pressure may be drying up. Bitcoin Coinbase Premium Gap Close To Zero, But Still Negative As pointed out by an analyst in a CryptoQuant post, the selling pressure from US investors seems to have reduced in recent days. The “Coinbase Premium Gap” is an indicator that measures the difference in the Bitcoin prices listed on crypto exchanges Coinbase (USD pair) and Binance (USDT pair). The quant notes that US investors are known to use the Coinbase platform, especially high-net entities and institutions. When the value of this metric is positive, it means the price on Coinbase is higher at the moment. Such a trend suggests there has been buying from US investors recently. Related Reading | Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead? On the other hand, a negative premium gap implies there has been some selling on the crypto exchange as the price is lesser than on Binance. Now, here is a chart that shows the trend in the Bitcoin Coinbase premium gap over the year 2022 so far: The value of the metric looks to be negative right now | Source: CryptoQuant As you can see in the above graph, the Bitcoin Coinbase premium gap has been negative in the last couple of months. During the LUNA crash, it reached a highly red value of $131, which means there was...