BTC long or short? New indicator explanation and sharing, use quantitative analysis 👇👇👇

BTC Coinbase Premium can provide answers to BTC's future trends and is considered a leading indicator of BTC's future price trends.

Coinbase Premium tracks the difference between Bitcoin prices on Coinbase and Binance.

When this indicator is positive, it means that the current price on Coinbase is higher than Binance. This trend indicates that the buying pressure on the former platform may be higher than the latter (or the selling pressure is lower).

A negative value means that the selling volume on Coinbase may be higher than Binance because the asset is trading at a lower price on Binance.

The figure below shows the trend of the 30-day moving average (MA) of Bitcoin Coinbase premium over the past few years:

The 30-day MA premium has been positive recently, indicating that Coinbase users are reflecting a premium by supporting the asset.

Coinbase is generally considered the preferred trading platform for institutional users in the United States, while Binance has a wider global user base.

Therefore, the value of the premium can hint at how the behavior of US whales differs from the rest of the world.

As can be seen from the chart, the buying pressure from these institutional traders has started to decline after the price peaked. While still trending positive overall, it is now very close to the neutral zero mark.

Whenever this indicator bottoms out in negative territory and reverses back to an uptrend, a rally in price has occurred.

This trend was also seen earlier this year, when a reversal in this indicator led to a rally in Bitcoin that would eventually break out to all-time highs.

Coinbase Premium is currently trending down, but has not yet fallen into negative territory. It is in a “wait and see” phase, and a rebound may take more time.

The indicator must first fall further and reach a reversal point, at least if the historical pattern is to repeat itself.

Bitcoin had earlier fallen below $61,000, but has rebounded slightly over the past day, moving back up to around $62,000.

Many years of experience in encryption

Welcome to discuss together, look at the point, look at the direction, position distribution, select potential coins

Strong fan buoyancy, never play the game of empty talk or collecting rice, only share sincerely

Follow first, then get rich🔥🔥🔥