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Bitcoin Recovers Above $98,000 as Coinbase Whales Start Buying
The Bitcoin market has seen a remarkable reversal in the past few days, with the cryptocurrency recovering above $98,000. This comes after an intense selloff that led to a crash below $92,000, which was accompanied by a significant decline in the Coinbase Premium Gap.
However, it appears that the tide has turned once more, as Bitcoin whales on Coinbase have started buying up the dip. The Coinbase Premium Gap, which tracks the price difference between Coinbase and Binance, has reversed into positive territory, suggesting that buying pressure is now building up on the platform.
As seen in the graph above, the Bitcoin Coinbase Premium Gap was inside the negative territory yesterday, indicating that Coinbase was witnessing a higher amount of selling pressure compared to Binance. However, since then, the situation has dramatically changed as the metric has reversed and entered positive territory, suggesting that buying pressure is now taking over.
This development can be seen in conjunction with the recent Bitcoin price action. In the past day, Bitcoin’s value surged by around 1%, with prices reaching $98,400 at the time of writing. This sudden reversal could be attributed to institutional investors and Coinbase whales buying up the dip following the latest market turmoil.
As we move forward, it would seem wise to monitor this indicator closely as it has been a reliable predictor of the overall market sentiment and price action in 2024. If the metric continues to stay in positive territory, it may suggest that institutional investors are still committed to accumulating Bitcoin at these levels, which could be a significant bullish sign.
On the other hand, if the indicator begins to decline once more, it might be indicative of increased selling pressure, which could lead to further downward pressure on prices.
Source: bitcoinist.com
