Bitcoin Price Dips Below $30,000 as Coinbase Premium Goes to -122
At present, the Coinbase premium is running in negative at -122 suggesting the selling pressure is high and whales are more likely to sell than hodling. Coinbase Premium is the bitcoin price difference in USDT on Coinbase and Binance. During the peak of the bull season, the extensive buying by whales took the price of BTC on Coinbase $300 more than that of Binance owing to high buying pressure. Over the past few weeks, the Coinbase premium has turned out to be a reliable indicator to suggest the market sentiments.
$28k May is not Bottom As Bitcoin Price Premium Dips Further
Bitcoin price seems to be struggling to hold its position above $30,000 having recorded a daily low of $28,900 as the crypto market shows signs of the first significant correction since November last year when the bitcoin price started to climb. Despite a significant liquidity crunch on exchanges and massive hoarding by whales during the price crash, it seems bitcoin’s volatility is making it harder to make a call.
However, one particular pattern or correlation that has emerged this bull season is the Coinbase Premium.
Coinbase premium just hit -122
Chart: https://t.co/RpcUEnGxB6 https://t.co/osn5c9g0Km pic.twitter.com/sf8yBs68m4
— Ki Young Ju 주기영 (@ki_young_ju) January 22, 2021
Bitcoin Price and Coinbase Premium
Price Premiums are nothing new and often reflects the low supply and high demand. However, exchange price premiums were mostly seen on platforms with low liquidity and a small customer base, this bull season, the massive whale trades has led to BTC being bought and sold at premium prices on some of the most popular exchanges such as Binance and Coinbase with trading volume in billions.
It all began when BTC started selling at a premium in Asian markets especially South Korea leading to Asian whales selling in heaps and creating a minor dip in BTC price, followed by US whales aggressively buying the dip creating a price difference of up to $350 on Coinbase and Binance.
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