- Bitcoin’s Coinbase Premium Index has entered negative territory.
- The coin’s Awesome Oscillator suggests that while price momentum remains weak, the market has yet to be engulfed by bearish sentiments.
After a brief moment of interest between January 27 and 30, US investors are pulling out of Bitcoin trading [BTC] on Coinbase.
The coinbase Premium Index (CPI), which tracks the difference between prices on Coinbase and Binance, has slipped back into negative territory, indicating less trading activity on the US-based exchange.
According to data from CryptoQuantDue to the decline in the value of BTC, the CPI value was negative for most of January. Shortly after the ETF’s approval on January 10, BTC’s CPI turned negative and remained that way until January 27.
Between January 27 and 30, the index briefly turned positive, signaling a potential increase in US investor activity.
However, as the coin’s price continues to encounter significant resistance at the $43,000 price, the CPI has fallen back into negative territory. At the time of writing, BTC’s CPI was -0.009.
Source: CryptoQuant
This is confirmed by the coin’s Coinbase Premium Gap (CPG) trends in the same way, according to CryptoQuant data. When BTC’s CPG is negative, it means that the coin is trading at a much lower price on Coinbase than on Binance due to a plethora of reasons ranging from market imbalance and liquidity issues.
While US investors have shied away from trading the leading currency, Asian investors have taken the opposite approach.
BTC’s CPI comparison with its Korean Premium Index (KPI) – which measures the price difference between the amount the currency trades on South Korean exchanges compared to global exchanges – showed that Asian investors continue to intensify their accumulation efforts.
Although BTC’s KPI, measured on a 30-day moving average, is trending downward, it remains in the positive territory, indicating that Asian investors continue to favor accumulation.
Source: CryptoQuant
High sell-off numbers, but bearish sentiment is the key to staying at bay
Readings from BTC’s Awesome Oscillator, observed on a 24-hour chart, showed that after an extended period of posting downward red histogram bars, the trend changed on January 27. Since then, the indicator has only shown downward green bars.
Source: TradingView
How much are 1,10,100 BTCs worth today?
Red bars on an asset’s Awesome Oscillator are often interpreted as a bearish sign, indicating an increase in selling pressure. This was the case with BTC, which witnessed significant sell-off after the ETF rally.
However, the emergence of green bars in recent days indicated that while short-term momentum remains weak, bearish sentiments remain minimal.