The Coinbase Premium Index reportedly shows that the US BTC sellers have a resilient status. CryptoQuant, a well-known on-chain analytics company, revealed that the present CPI stands at nearly -0.008 while the SMA14 is moving near 0.020, showing a strong position of sellers. The analytics provider disclosed the respective development on its official X post.
Source: CryptoQuant
Coinbase Premium Index Suggests a Mounting Selling Pressure from Bitcoin Sellers in the US
Apart from that, the platform discussed this situation in its analysis report. It noted that the CPI has fallen below the 14-day simple moving average thereof. Such a development indicates a rise in selling pressure in the case of Bitcoin. The respective correlation has reportedly become particularly notable after the spot ETF approval in the United States. This has improved the role of CPI as an important indicator in the case of price movements.
The analysis of the data concerning CPI during this year points out a clear pattern. In this respect, the price corrections of the chief crypto token tend to take place when the CPI dips below the SMA14. The respective trend signifies the significance of observing such metrics to anticipate market behavior.
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The Coinbase Premium Index measures the discount or premium of BTC prices on Coinbase in comparison with other exchanges. If CPI is negative, it highlights that BTC is low-priced on Coinbase. This implies that a surge in selling pressure coming from investors in the United States. The spot ETF authorization in the US market has elevated the importance of the CPI indicator.
The CPI and the SMA14 of the Indicator Signify More Seller Impact Influence in the US
As a result of this, the CPI fluctuations are now reflecting the wider market trends to a further extent. Ultimately, the use of CPI along with the SMA14 thereof has emerged as a considerably reliable method to track short-term market sentiment and price movements. At the moment, the CPI is standing placed at -0.008 while 0.020 is the spot of SMA14. According to CrytpoQuant, the respective disparity suggests the stronger influence of the sellers in the United States market.
