Bitcoin Coinbase Premium Gap Enters Deep Red Territory — What’s Happening?

Bitcoin has been struggling to recover since the market crash in early October, falling deeper into bearish territory. The prevailing sentiment surrounding Bitcoin is not bullish due to the ongoing market downturn. On-chain analysis suggests that US investors are contributing significantly to the selling pressure. This analysis uses the Coinbase Premium Gap metric, which compares Bitcoin prices on Coinbase to global exchanges. A negative Coinbase Premium Gap indicates more selling activity from US traders compared to the rest of the market. The recent Coinbase Premium Gap reached -$57, signaling that US traders are actively selling Bitcoin. This heightened selling pressure coincides with Bitcoin's price decline, indicating a lack of US demand. Historical data shows that prolonged negative readings can precede market bottoms and subsequent price recoveries. If the trend continues with no new demand, Bitcoin's price could further decrease. A reversal of the Coinbase Premium Gap to positive territory could be a positive catalyst. Currently, Bitcoin's price is around $88,260, showing little movement in the past day.