Bitcoin (BTC) Coinbase Premium Index Turns Negative for the First Time in 15 Days

Key takeaways:

Coinbase premium turns negative for the first time in 15 days as short-term defensive sentiment kicks in among US investors.

Bitcoin CME futures gaps for support at $92,000-$92,500 and resistance at $96,400-$97,400 as it trades in a period of range-bound.

The cryptocurrency market is showing early signs of a downturn as Coinbase premium turns negative.

The Coinbase premium, which compares the price of Bitcoin (BTC) on Coinbase Pro to Binance exchange, dropped into negative territory on Monday. This occurrence follows a 15-day period of positivity, signaling that short-term sentiment among US investors might be shifting.

The drop in the premium also coincides with Bitcoin slipping below the $94,000 mark. The decrease in the Coinbase premium may indicate less buying pressure on the exchange, which is typically viewed as a proxy for both institutional and retail demand in the US.

Earlier reports by Cointelegraph highlighted signs of selling pressure as Bitcoin recorded over $300 million in negative spot cumulative volume delta (CVD) from April 27 to April 29, suggesting sustained sell-side activity.

This selling pressure continued over the weekend, ultimately pushing the price lower. According to anonymous crypto analyst Exitpump, Bitfinex whales displayed significant selling pressure in the lower time frames compared to Coinbase and Binance.

Moreover, approximately 8,000 BTC in open interest (OI) was liquidated across futures markets over the weekend, indicating reduced leverage. However, recent data shows that the aggregated futures bid-ask delta is turning positive, which might indicate potential buying interest in derivatives markets.

Bitcoin futures gaps in both directions

Bitcoin is at a pivotal juncture, trading around $94,000 between two CME futures gaps. The gaps are between $92,000 and $92,500 from two weeks ago and $96,400 and $97,400 from the recent weekend. CME gaps often act as magnets for price action, with historical trends showing a tendency to fill these gaps in a matter of days.

Bitcoin is expected to test at least one gap this week, with a potential drop to $92,000 being more likely after Bitcoin failed to hold its position above its 200-day simple moving average (blue line).

The cryptocurrency slid below the 200-day SMA for the first time since April 11, which might indicate a trend shift in the lower time frame (LTF) chart.

However, choppy price action is likely in the short term due to overhead resistance at $97,000-$98,000 (CME gap 1) and key support at $93,000, where multiple liquidity levels are present.

Crypto trader known as UB highlighted several key areas to keep an eye on: