From this Coinbase premium, we can get some pretty good investment insights into how we can predict price rebounds. The pattern is that when the Coinbase premium bottoms and rises, BTC price also bottoms.
In other words, there have been Coinbase premium trends in the last two years where the price bottomed four times 1) when the premium was negative and 2) when it was slowing down. Note that right now, we are in a slowdown as both conditions are met, with a negative Coinbase premium
Therefore, if the price follows the previous Coinbase Premium pattern, there is a good chance that the price will continue to move sideways intermittently in the future, but there is also a good chance that the price will continue to rebound to higher lows.
However, no matter how good an indicator looks, it's important to cross-validate it with other indicators, as it's hard to be confident with a single indicator.
Written by SignalQuant