Hi everyone. After a long break, I will be initiating coverage on a cryptocurrency exchange:
Coinbase Global, Inc. (NASDAQ: COIN)
On the weekly timeframe, we’ve seen this setup before. It is a massive rounding bottom setup. We’re currently in the midst of a consolidation phase before making the next leg higher, and that’s the focus of today’s newsletter.
On the daily timeframe, COIN is trading in a bullish descending channel that is likely to find support at the 168.40 daily imbalance as well as the blue Oct’23 ascending trendline. It has currently retraced about 50% of its move up from 114.51 (most recent swing low) to 283.48 (most recent swing high). However, an analysis of the past 4 swings to the upside suggests that COIN retraces at least 61.8% of its moves up, which places minimal downside at 179.06 before a reversal.
For me to turn bullish on COIN, I need to see signs of a bullish divergence. Notice how the past 4 rallies started only after we formed a regular bullish divergence on the daily chart. Until then, I continue to be bearish on COIN.
Sentiment: SELL (New)
Summary (with Price Targets - NFA):
Bullish descending channel with a price target of 168.40, which would resolve the bullish imbalance and (likely) see confluence with the blue Oct’23 support trendline
Needs a bullish divergence on the daily chart for me to turn bullish, given prior price action
Investors can consider hedging long positions with protective puts
Alright, that’s it for this newsletter. Till next time!
$Coinbase Global, Inc.(COIN)$ $Marathon Digital Holdings Inc(MARA)$ $Riot Platforms(RIOT)$ $MicroStrategy(MSTR)$ $CleanSpark, Inc.(CLSK)$
@TigerWire @TigerStars @TigerEvents @CaptainTiger @MillionaireTiger
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