Coinbase Premium’s Negative Values Followed by Rebound Signal Positive Outlook for Bitcoin’s Price

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First, I want to emphasize that this is a short-term analysis. The Coinbase Premium briefly dropped to -100 points, but Bitcoin’s price has since rebounded.

Over the past year during the bull market, whenever the Coinbase Premium fell below -50, Bitcoin’s price tended to bounce back afterward.

Bitcoin has been consolidating within a large range for the past 8 months. If a bear market had started, we would expect to see panic selling when the Coinbase Premium goes negative, but that has not been the case.

This suggests that someone is continuing to accumulate Bitcoin at lower prices, and I believe the bull market is not over yet.