Bitcoin, US Investors Were the First to Sell...Coinbase Premium Hits '6-Week Low'

▲ Bitcoin (BTC) / AI generated image

The Coinbase premium indicator, which gauges US investor demand in the Bitcoin (BTC) market, has fallen to a 6-week low. As short-term profit-taking increased, Bitcoin's price on Coinbase dropped below that on Binance, but analysis also suggests that selling pressure is easing in the mid-to-long term.

Cointelegraph reported on May 20 (local time) that profit-taking by Bitcoin traders pushed the Coinbase Bitcoin premium to a 6-week low, but long-term investor demand is supporting the bottom of the range. As Bitcoin rose towards $82,000, holders' profit-taking expanded, and this trend put pressure on the short-term premium indicator.

According to CryptoQuant, the Coinbase premium index fell to -0.087 on May 19, the lowest figure since March 31. A negative premium means that Bitcoin traded at a lower price on Coinbase than on Binance, interpreted as a sign of relatively weakened US-based buying pressure.

The scale of profit-taking was also significant. As Bitcoin climbed towards $82,000, holders realized profits totaling 14,600 BTC, or $1.14 billion, on May 4 alone. CryptoQuant explained that unrealized profit rates rose to 17.7% on May 5, reaching their highest level since June 2025.

However, the long-term trend of the Coinbase premium showed a different picture from the short-term indicator. The 14-day simple moving average remained above its February low. Cointelegraph reported that in the past, the recovery of this moving average preceded a resurgence in Coinbase spot demand, after which Bitcoin climbed towards $110,000 between April and May 2025.

Bitcoin is holding above the $70,000 to $75,000 range. This area has been identified as a zone of strong spot accumulation in the past. CryptoQuant analyst Amr Taha analyzed that internal activity within the Coinbase ecosystem remained high even during the recent correction phase. Base blockchain revenue increased to approximately $972,000 on May 19, surpassing end-of-March levels.

In terms of technical trends, Bitcoin is still holding key support levels. Even after being rejected near $82,000, Bitcoin is trading above the 100-day exponential moving average, located near $76,800. The current correction is being maintained within the fair value gap between $76,000 and $77,000, and a rebound from this range could reopen the possibility of retesting $80,000 to $82,000.

Conversely, $74,800 is considered a key defensive line. If Bitcoin closes below this price on a daily basis, the trend of higher lows from the current high could show its first bearish reversal signal, and market attention could shift to the psychological support level of $70,000. In the futures market, net taker trading volume based on a 30-day moving average decreased from $243 million in April to $58 million on May 18, but it still remained in positive territory, showing a trend of absorbing selling pressure during the correction phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*