Bitcoin Rally Stalling? Coinbase Premium Disappears as BTC Nears $100,000 Resistance
2024-11-23

As the price of the flagship cryptocurrency Bitcoin BTCUSDT hovers around the $99,000 mark the Coinbase Premium Index, which measures the price difference between BTC on Coinbase and other exchanges, has “disappeared.”
According to a post from CryptoQuant analyst “maartunn,” the index disappeared “as soon as Bitcoin tagged $98,000,” which means that spot exchange-traded funds (ETFs) will have to “step up” to “keep the price elevated.”
Source: CryptoQuant
The Coinbase premium index is an indicator showing the price gap between Coinbase’s BTCUSD trading pair and Binance’s BTCUSDT pair. When the premium is positive, it shows buying pressure on the exchange is heating up.
A deeply discounted premium suggests weak buying pressure from American investors, a trend that has coincided with past Bitcoin price bottoms.
Back in July, the index was a key indicator in finding the cryptocurrency’s market bottom, as after the premium discount was negative the head of research at cryptocurrency brokerage FalconX, David Lawant accurately called BTC would see a “splendid” return in the next six to twelve months.
Since then, the cryptocurrency’s price has exploded from a little under $60,000 to now trade at $99,000 near the psychological resistance level of $100,000.
Featured image via Unsplash.