Before I explain, I want to point out that we’re by no means bears<\/a> on bitcoin.<\/p>\n Regular Market Minute<\/em> readers may recall when we recommended $42K<\/a> as another one of those opportunities to buy with open arms. We wrote, ”…long-term bulls<\/a> should get excited about bitcoin hovering around $42K…”<\/p>\n It turns out, we weren’t the only ones that saw this as a buy zone…<\/p>\n One indicator I use to figure out if institutional investors, or “whales,” are buying is the price differential between bitcoin traded on Coinbase and other exchanges.<\/p>\n I look at Coinbase because it’s a regulated, buttoned up, publicly traded company.<\/p>\n Institutional investors – like Cathie Wood for instance – can’t take the risk of being involved with smaller exchanges. So, when they make a transaction, they tend to do it on Coinbase.<\/p>\n This indicator reveals key technical levels, and I’ve even used it to recommend buying at the $30K level not once… but three separate times<\/a> here in Market Minute<\/em>.<\/p>\n So, let’s take a look at how these price differentials looked on two separate exchanges when bitcoin was taking off from $42K between September 30 and October 1…<\/p>\n (Click here to expand image)<\/a><\/p>\n The chart shows the price differential on Coinbase vs. Bitfinex (black dotted line) overlaid on the price of bitcoin (blue).<\/p>\n Not only did the price differential track bitcoin perfectly, those who were buying on Coinbase were willing to pay a $600 premium<\/em> to Bitfinex – a sign that the whales<\/a> (big holders of bitcoin) were actively buying that level.<\/p>\n In addition, this was coming off the fallout from China’s all-out crypto ban – which sent bitcoin down 20% from $50K…<\/p>\n Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n What ensued was a fast and furious rally from $42K to new all-time highs… a 60% gain in just 3 weeks.<\/p>\n But now, let’s take a look at this same indicator on the day it broke its previous high of $64,869 this Wednesday…<\/p>\n![\"\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202110\/20211022-mm-03_pwx283.png\")
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