Bitcoin Breaks Above $22,000 As Whales Show Buying Activity On Coinbase

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Bitcoin has once again broken above $22,000 as on-chain data shows signs that whales have been buying BTC on Coinbase recently.

Bitcoin Coinbase Premium Gap Has Been Highly Positive Lately

As pointed out by an analyst at CryptoQuant PostCoinbase premium gap has been widening in recent days. The “Coinbase Premium Gap” here is a metric that measures the difference between the price of bitcoin listed on cryptocurrency exchange Coinbase and that listed on Binance.

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Coinbase is popularly known to be used more by US-based investors (especially institutional holders), while Binance receives more global traffic. This means that the premium gap can provide insight into which of the two user bases is providing more buying pressure (or selling pressure) on the asset right now.

When the value of the indicator is negative, it means that the price listed on Coinbase is currently lower than that of Binance. This would suggest that Coinbase users have been selling more (or simply, buying less) than global users recently.

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On the other hand, a positive premium differential means that US investors are currently buying more assets than the global user base due to the higher price of Coinbase.

Now, here is a chart that shows the trend in the bitcoin coinbase premium gap over the past few weeks:

bitcoin coinbase premium gap

Looks like the value of the metric has been pretty high in recent days | Source: CryptoQuant

As shown in the graph above, the Bitcoin Coinbase Premium Gap has been hovering around neutral values ​​for the past two weeks, but after BTC dropped to around $19,500, the value of the metric started to increase somewhat sharply.

This increase suggests that whales on Coinbase began buying the cryptocurrency in large quantities as soon as BTC hit those low prices, driving the price up on the exchange.

These higher prices have continued ever since, meaning that the buying pressure on the platform has not diminished relative to the activity on Binance.

After reaching these higher values ​​of Coinbase Premium Gap, the price stopped further decline. And over the past 24 hours, bitcoin has also seen some rapid upward movement, which may confirm that whales are indeed buying heavily on Coinbase and that the premium differential is not simply because US-based investors There are fewer sales in comparison. For global holders.

If the spread premium holds at higher values ​​and whales continue to buy, BTC could see further upside. Quant also noted in the post that if whales intend to continue the rally, it is also unlikely that the asset will drop below the $19,500 level anytime soon, as this is where most of the indicator’s value lies. The increase was observed earlier.

btc price

At the time of writing, bitcoin is trading around $22,000, down 2% over the past week.

bitcoin price chart

The value of the asset seems to have surged over the past day or so | Source: BTCUSD on TradingView
Featured Image by Hans Eiskonen on Charts from,

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