Coinbase Premium which was negative for the past couple of days has finally turned positive and moved above 50 after almost a week suggesting Coinbase bitcoin whales have started buying the top cryptocurrency in hoards again leading to a price gap of nearly $66 between Coinbase and Binance.
Coinbase Premium, the price difference between the Coinbase spot market and the Binance spot market has emerged out as one of the key indicators to track Bitcoin whale sentiments this season
It seems Coinbase whales are starting to buy $BTC. Now Coinbase Premium is +$66.
Punted a small long here.
— Ki Young Ju 주기영 (@ki_young_ju) January 27, 2021
Bitcoin seems to be stuck between the price range of $30k to $35k over the past couple of weeks despite showing signs of a breakout. The top cryptocurrency is currently trying to regain $31,000 levels after reaching a daily low of $30,535.
Is the Bitcoin Price Finally Breaking Current Range?
Bitcoin after creating a new all-time high of $42,000 has experienced a series of market corrections of over 10% over the past three weeks and has breached the $40,000 price level only once after the ATH, the top cryptocurrency has failed to move out of its current range. While the on-chain metrics look quite strong, the price action did not resonate the same.
Many trade pundits have claimed that the top cryptocurrency can retrace to sub $25k levels if it fails to hold the $28k support. While the Coinbase premium does reflect whale sentiments another metrics called exchange whale ratio is flashing bearish signal as it nears 0.9 marks.
The exchange whale ratio is another metric developed by CryptoQuant that follows the ratio of the top-10 transactions to the inflows. In bear markets, this value is usually above 0.85 while in bull markets, it is typically below 0.85.
The two conflicting metrics are the result of the current market movement and where whale sentiments are dominating the price action, however bitcoin still looks bullish in the long term.