Coinbase Premium Index

Coinbase Premium Index

This indicator tracks the price premium or discount of Bitcoin on Coinbase relative to Binance, providing insights into institutional demand and market sentiment.

How It Works:
- Compares BTC/USD price on Coinbase vs BTC/USDT on Binance
- Calculates the price differential in real-time
- Displays as a histogram with positive (green) or negative (red) values
- Offers both percentage and dollar-based views

Key Features:
- Dual Display Modes: Switch between percentage and dollar premium
- Color-Coded Histogram: Green bars indicate Coinbase premium, red bars show discount
- Real-Time Data: Uses live price feeds from both exchanges
- Clean Visualization: Easy-to-read histogram format in separate pane

Market Implications:
- Positive Premium (Green): Coinbase trading higher = potential institutional buying pressure
- Negative Premium (Red): Coinbase trading lower = possible institutional selling or retail dominance
- Magnitude Matters: Larger premiums/discounts suggest stronger sentiment shifts
- Divergence Signals: Premium changes can precede price movements

Use Cases:
- Gauge institutional vs retail sentiment
- Identify potential trend reversals
- Confirm breakout strength
- Monitor smart money flow

Settings:
- Display Mode: Choose between "Percentage" or "Dollar" view