We can use the trend of Coinbase Premium as a leading indicator of the future direction of BTC price. As you can see from the data, when Coinbase Premium trend is 1) negative and 2) reverses from a downtrend to an uptrend, the price has rebounded. Its good example is when Grayscale won the Grayscale-SEC lawsuit to convert GBTC to an ETF and it led to a significant surge in the price.
FYI, the current Coinbase Premium trend is currently positive, close to zero. So if the historical pattern repeats itself, we may have a better chance of success if we wait a bit longer and invest on the rebound after the trend turns negative.
Written by SignalQuant