A recent analysis from a CryptoQuant analyst, known by the pseudonym ‘Avocado Onchain,’ has highlighted a notable development in the Bitcoin market.
According to the analyst’s observations, the Coinbase Premium, which tracks the price difference between Bitcoin on Coinbase and Binance, has turned negative.
This indicates that the price of Bitcoin is lower on Coinbase compared to Binance, a signal that often points to a divergence in buying activity across different markets.
Buying Pressure Shifts To Global Markets
Despite the negative Coinbase Premium, the analyst noted that Bitcoin’s price has increased. This suggests that while US-based traders on Coinbase may not be driving the price up, there is significant buying pressure on Binance, a major exchange catering to global users.
The analyst pointed out that the negative Coinbase Premium suggests buyers outside the US are more active, particularly on Binance, where the price is slightly higher.
Negative Coinbase Premium Signals Strong Buying Pressure on Binance
“During the current upward trend, the fact that the Coinbase Premium is negative while #Bitcoin’s price isn’t falling suggests that there is strong buying pressure occurring on Binance.” – By @avocado_onchain… pic.twitter.com/ipZ09cA1JK
— CryptoQuant.com (@cryptoquant_com) September 20, 2024
This buying activity reflects a stronger demand for Bitcoin on international platforms. Adding to the analysis, Avocado noted that for Bitcoin to experience a more substantial price increase, buying pressure would need to continue its expansion globally, driven by fear of missing out (FOMO) across multiple regions.
According to the analyst, this shift in buying pressure toward Binance is seen as a “positive sign” for Bitcoin’s price trajectory.
Bitcoin Performance So Far
Notably, Bitcoin’s price performance has reflected the positivity from this buying pressure shift. The asset has seen a significant increase in the past day, rising to above $64,000 in the early hours of Friday.
However, Bitcoin has now seen a slight decrease from this 24-hour high to a trading price of $62,831, at the time of writing down by 0.7% in the past day.
Notably, the increase in BTC price to over $64,000 also resulted in a brief spike in Bitcoin’s market cap valuation, rising by $20 billion to roughly $1.260 trillion before now sitting at $1.242 trillion at the time of writing.
According to analysts, Bitcoin major rally is fast approaching. A crypto YouTuber known as Crypto Rover recently pointed out on X that the Bitcoin bull market usually starts 170 days after halving.
Rover speculated that as the market currently stands 153 days after the halving, is it possible for history to repeat itself?
Usually, the #Bitcoin bull market starts 170 days after halving.
The market top is 480 days after halving.
Currently, we are 153 days after the $BTC halving.
Will history repeat? pic.twitter.com/O4Ey0vQa39
— Crypto Rover (@rovercrc) September 20, 2024
Featured image created with DALL-E, Chart from TradingView