Coinbase Slips To New All-Time Low While Bitcoin, Ethereum Hold Steady: What’s Next? By Benzinga
© Reuters. Coinbase Slips To New All-Time Low While Bitcoin, Ethereum Hold Steady: What’s Next?
gasoline gas Coinbase (NASDAQ:) Global, Inc (NASDAQ: COIN) reached a new all-time low on Monday as fear in the crypto sector continues to plague related stocks following Sam Bankman-Fried’s FTX disaster.
Bulls were fighting intraday to hold Coinbase above a psychologically important $40 mark but lower-than-average volume was causing the stock to consolidate mostly sideways on smaller timeframes. Coinbase was also holding above the area because (CRYPTO: BTC) and (CRYPTO: ETH) were trading mostly sideways.
Cathie Wood‘s-led Ark Investment Management bought the dip on Friday, adding 78,982 shares of the cryptocurrency exchange to its holdings for a total position of about 5.7 million shares.
Wood, a staunch Bitcoin bull, has predicted the apex cryptocurrency will reach a $1 million valuation by 2030 but has also given $400,000 and $500,000 price targets in the past.
The bottom may not be in for Coinbase because the stock started trading in a downtrend on Dec. 6 after breaking bearishly from an ascending channel pattern, which Benzinga called out on Dec. 6. If the $40 area holds, however, and the market reacts bullishly to consumer price index data on Tuesday, Coinbase may receive a boost due to a double bottom pattern that has formed.
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The Coinbase Chart: Coinbase may have printed a double bottom pattern at $40 on Monday and Friday, by holding near the level. If Coinbase bounces on Tuesday, the stock will need to trade up above $44.15 in order to negate the current downtrend.
- If Coinbase falls under $39.65 on Tuesday, Monday’s high-of-day will become the next lower high within the stock’s downtrend. Technically speaking, Coinbase looks neutral because although the stock is in a downtrend, Coinbase was working to print a possible inverted hammer candlestick on Monday, which could indicate a spike higher is on the horizon.
- Coinbase has also developed bullish divergence on the daily chart, which suggests higher prices may be in the cards. Bullish divergence occurs when a stock makes a series of lower lows but its relative strength index makes a series of higher lows.
- Coinbase has resistance above at $44.15 and $50.34 and support below at $40 and lower psychologically important areas of $35 and $30.
Read Next: Coinbase Gets Re-rated As Analyst Weighs Scalable Model Balanced By Limited Revenue Visibility
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