- Bitcoin’s Coinbase Premium Index has slipped into negative territory.
- The coin's Awesome Oscillator suggests that while price momentum remains weak, the market is not yet overtaken by bearish sentiments.
After a brief moment of interest between January 27th and 30th, US-based investors are withdrawing from trading Bitcoin [BTC] on Coinbase.
The Coinbase Premium Index (CPI), which tracks the difference between prices on Coinbase and Binance, has fallen back into negative territory, indicating lower trading activity on the US exchange.
According to data from CryptoQuant, BTC's CPI value was negative for most of January due to the decline in BTC's value. Shortly after the ETF approval on January 10th, BTC’s CPI turned negative and remained that way until January 27th.
Between January 27th and 30th, the index briefly turned positive, suggesting a possible increase in US investor activity.
However, as the coin's price continues to face significant resistance at the $43,000 price mark, its CPI has fallen back into negative territory. At press time, BTC’s CPI was at -0.009.
Source: CryptoQuant
To confirm this, the coin's Coinbase Premium Gap (CPG) is trending similarly, according to data from CryptoQuant. When BTC's CPG is negative, it means that the coin is trading at a much lower price on Coinbase than on Binance for a variety of reasons ranging from market imbalances to liquidity issues.
While US-based investors shy away from trading the leading coin, Asian investors take the opposite approach.
BTC's CPI comparison with its Korean Premium Index (KPI) – which measures the price difference between the coin's trading volume on South Korean exchanges and global exchanges – showed that Asian investors continue to ramp up their accumulation efforts.
Although BTC's KPI is trending downward on the 30-day moving average, it remains in positive territory, indicating that Asian investors continue to favor accumulation.
Source: CryptoQuant
High sell-offs but bearish sentiment is key to protection
BTC's Awesome Oscillator readings observed on a 24-hour chart showed that the trend changed on January 27 after displaying downward-pointing red histogram bars for an extended period. Since then, the indicator has only shown downward-pointing green bars.
Source: TradingView
How much is 1,10,100 BTC 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 saw significant sell-offs following the ETF rally.
However, the appearance of green bars in recent days signaled that while short-term momentum remains weak, bearish sentiment remains minimal.
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