In the past day, the price of Bitcoin has fallen below the $93,000 mark. Below are the indicator trends that suggest the reasons behind this decline.
The premium gap between Bitcoin and Coinbase has narrowed
As noted by CryptoQuant community analyst Maartunn in a new post on X, the Coinbase premium gap has recently returned to a neutral level. The 'Coinbase premium gap' here refers to the indicator that tracks the difference between the Bitcoin price listed on Coinbase (USD) and the Bitcoin price listed on Binance (USDT).
This indicator essentially tells us how the user base of the two cryptocurrency exchanges differs in their buying or selling behavior. Coinbase's main traffic consists of U.S. investors, particularly large institutional entities, while Binance serves global investors.
When the Coinbase premium gap is positive, it means the buying volume from U.S. whales is higher than that of Binance users, or the selling volume is lower than that of Binance users, which is why assets on Coinbase are more expensive. Conversely, a negative premium gap means that Binance has higher net buying pressure.
Now, here is a chart showing the trend of the Bitcoin Coinbase premium gap over the past few days:
As shown in the above chart, the Bitcoin Coinbase premium gap was previously at a significant positive level, but in the past day, its value has dropped to neutral zero.
Maartunn indicates that the source of the premium is Microstrategy's latest buying spree. In fact, the cooling period of this indicator coincides with the time when Michael Saylor's company completed a $5.4 billion acquisition. The company's substantial accumulation has helped the cryptocurrency maintain its recent highs, but as buying pressure has diminished, the price of Bitcoin has fallen below $93,000.
BTC and the Coinbase premium gap have maintained a close relationship throughout 2024, so this indicator may be worth monitoring recently, as its next movement could once again signal the next destination for the asset. Of course, dropping into negative territory could mean further price declines.
In other news, as Maartunn shared in another X post, the Bitcoin active addresses indicator has recently seen a sharp increase. This indicator tracks the number of addresses participating in some trading activity on the network each day.
Below is the 14-day simple moving average (SMA) chart of active addresses shared by CryptoQuant analysts:
With the latest surge, the 14-day SMA of Bitcoin active addresses has reached its highest point in 11 months. This indicates that there has been a lot of activity on the network recently. However, given that the asset has fallen in the past day, recent user interest is certainly not in buying.
BTC Price
At the time of writing, Bitcoin's price hovers around $92,400, having fallen nearly 6% in the past 24 hours.
