Coinbase Stock Prints Relief Bounce As Bitcoin Consolidates: What’s Next? – Converted organic products (COIN)

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After trending down last month, Coinbase Global, Inc (NASDAQ: COIN) rebounded nearly 2% more on Tuesday, partly powered by Bitcoin (CRYPTO: BTC), which was trading slightly higher in a diagram of consolidation of the inner bar.

Stocks closely tied to the cryptocurrency market have been hit particularly hard in recent sessions, due to the significant pullback in Bitcoin and Ethereum (CRYPTO: ETH) as the general markets retreat.

The cryptocurrency exchange has fallen 34% since it hit a high of $ 368.90 on November 9 and if Bitcoin and Ethereum don’t change course soon, Coinbase’s sell-off could end. to chase.

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The Coinbase Chart: On Tuesday, Coinbase was trading slightly higher to ease its Relative Strength Index (RSI), which on Monday was close to oversold territory at around 33%. When the stock’s RSI hit the same level on December 6, Coinbase rebounded about 18% more over the next two trading days, allowing it to post a higher low at the level. of $ 290.

Coinbase retested the area as resistance on December 7th and it was rejected, creating a double downtrend on the daily chart. The stock then reacted to the trend and sold 16% to hit a lower low at the $ 243.50 level on Tuesday.

Tuesday’s relief rebound occurred on below average volume, indicating that there is currently a lack of interest in the stock from a bullish perspective. As of late afternoon, only 2.97 million shares had traded hands, compared to a 10-day average of 4.97 million.

Technical traders may have seen the rebound coming because on Monday Coinbase printed a doji candlestick which, when at the bottom of a trend, may indicate a reversal. Given that Tuesday’s candle is a bullish swallowing candlestick, this indicates that a big upward movement could occur on Wednesday, although it may simply be to print another higher lower.

Coinbase is trading below the eight- and 21-day Exponential Moving Averages (EMA), with an eight-day EMA trend below the 21-day, both of which are bearish indicators. The stock is also trading below the 50-day simple moving average, indicating that long-term sentiment is bearish.

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Bulls want to see big bullish volume come in and push Coinbase above a resistance level at $ 263.19 or for the stock to consolidate sideways and hold above the $ 245.50 level, which could reverse the downtrend. Above $ 263 there is additional resistance near $ 280 and $ 294. The bears want to see a big bearish volume come in and drop Coinbase to print another low to confirm that the downtrend is not over. There is support below at $ 248.49 and $ 225.48.

Coinbase closed 1.79% higher on Tuesday at 255.86.

Related Link: Coinbase To Launch NFT Support Via Self-Guard Wallet

Photo: Courtesy of coinbase.com/press

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