Can Coinbase Buck The Crypto Collapse Trend?
Coinbase Global, Inc. operates as a secure hosted bitcoin wallet to purchase and use bitcoin. It provides merchant tools that enable companies to accept payments in bitcoin by incorporating a single button.
Take a look at the 1-year chart of Coinbase (COIN) below with added notations:
Chart of COIN provided by TradingView
COIN had held an important level of support at $44 (blue) up until yesterday. The break of that level should lead to lower prices for the stock, overall. Rallies up to the $44 breakdown level should be met with additional selling.
The Tale of the Tape: COIN broke major support of $44. Traders could enter a short play now, or on any rallies up to $44, with a stop set above the price of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT
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