Journalist
Posted:
- BTC reserve on Coinbase has increased.
- BTC bears may have reemerged, but the bullish momentum remains.
The massive outflow of funds on Binance following the resignation of Changpeng Zhao as CEO has resulted in the depletion of Bitcoin. [BTC] reserves on the stock exchange.
On November 21, after news emerged that Zhao had left the company as part of the $4 billion settlement between US regulators and his cryptocurrency exchange, the currency’s reserves on Binance fell by 5,000 BTC.
Investors, concerned about a possible bank run on Binance, have turned to Coinbase for safety, resulting in a noticeable increase in BTC reserves over the past 48 hours.
While Binance’s BTC reserve fell by 5,000 on November 21, Coinbase’s BTC reserve rose by 12,000 BTC.
In a recent one reportIn fact, pseudonymous CryptoQuant analyst Gaah discovered that these coins were previously held on Binance.
Source: CryptoQuant
The Coinbase Premium Index (CPI) confirms increased activity on Coinbase over the past two days, rising 100% between November 21 and 22.
Source: CryptoQuant
The CPI is a metric that measures the difference between the price of an asset on Coinbase and Binance.
When an asset’s CPI value is positive and, in an uptrend, it indicates strong buying pressure among institutional investors on Coinbase.
At the time of writing, BTC’s CPI was 0.04.
Similarly, BTC’s Coinbase Premium Gap saw an increase after Zhao confirmed his announcement. It measures the difference between the price of BTC on Coinbase Pro and Binance
When this indicator returns a positive value and rises, it means BTC is trading at a premium to Coinbase Pro.
Source: CryptoQuant
Bear activity kept at bay
After an extended period of rally, the bears regained control on November 6, according to the currency’s Moving Average Convergence/Divergence indicator (MACD).
On that day, the MACD line crossed below the trend line, ushering in a new bear cycle. Since then, the volume of daily accumulation among spot market participants has noticeably decreased.
Read Bitcoins [BTC] Price prediction 2023-24
BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators have since moved lower as profit-taking activity gains momentum.
However, these indicators are still above their respective midlines, suggesting that the bulls have not yet been completely pushed out.
Source: BTC/USD on TradingView