COINBASE - POssible Trend Reversal in play?
Hi guys! So something ive been monitoring for some time now is Coinbase. Ive been extremely excited on Crypto since 15k - 20k range, in the hunt for potential bottoms. As ive missed the previous cycle bottoms in crypto. Anyway what im trying to get at is, BTC reclaiming the 30k level will show even stronger evidence that we are in fact in a BULL MARKET.
This means that stocks related to Bitcoin will also be impacted.
And COIN in a pure technical analysis point of view is showing great evidence of a bottom formation and trend reversal.
Lets jump in!
Firstly, lets take a look at price action:
Firstly, lets acknowledge our MAJOR bearish resistance trend line depicted in RED.
This line has acted as resistance since the top in November 2021 and has pushed the price down to our lows and this range (white rectangle). Notice the red circles, which shows price being rejected off this line.
This shows how powerful this line has been depicted in the history of the price action. So breaking above it and maintaing support would be indicative of a reversal in trend, in my opinion.
Now notice the ORANGE resistance trend line. This trend is since August 2022 and indicates an intermediate resistance trend that also worked to push price down.
Another Resistance trend is the YELLOW trend line, from January of 2023, that acted as a short term resistance.
The upper rim of the white rectangle is also a crucial area to watch. From $64 to $84 is a heavy resistance area that needs observation. If we get above $84, getting to $160 is easy play as theres no price structure above $84.
This analysis is on the weekly timeframe. So we need to see what happens on the close of friday. But we are currently in the process of breaking through the RED and YELLOW resistance trend lines.
Though its possible this week pushes us down again. A double bottom can be at play which would be extremely BULLISH.
Its IMPORTANT to note -> More we touch trend lines, the weaker they get! And the Structure seen by WHITE rectangle, indicates a consolidation area and possible bottom of COIN.
Now lets take a look at some of my indicators:
1. Notice the light PURPLE moving average, the 21 weekly EMA. Notice how we've been battling this line and ow moving above it. This becoming support and staying above will be supportive of trend reversal.
2. RSI -> notice how we have lower highs. If we break above the upper white line drawn, and create a higher high. This will support trend reversal. Ill be observing this.
3. Wave Trend Oscillator - Notice the GREEN arrows. You don't even need knowledge of what these indicators depict, visually you can get so much out of them! Check how when the green line is on top of the red dots, price moves up..... Check our current progress, we are currently showing similar pattern. This can mean trend change.
CONCLUSION: Though as of today, its still premature to say that we will be breaking trend at the end of this week. I believe there is evidence to state that its the time to be watching COIN.
If we are above these lines come the friday close of weekly candle, next couple weeks would be important and places to watch for buying positions. However, if you see rejection it is possible that we go down lower, possible to the lower rim of the WHITE rectangle. That would be a double bottom play, and potential area where i buy large positions. My opinion within this WHITE rectangle range, solid area to DCA. Its also important to remember to watch BTC prices, if prices stays above 30k, the case for crypto stocks also becomes bullish, in my opinion.
ALl in All, Hope this helped. If you liked my analysis, please do help me out by boosting and if you like TA info and direction please follow and or check out my other ideas. Also, let me know what you think by commenting!
DISCLAIMER: This is not financial advice, i am not a financial advisor. This is strictly my opinions and for educational purposes. When trading/investing please do work to make your own strategies, never listen 100% to other people. Also always practice strong risk management strategies and use stop losses!
Thank you!
This means that stocks related to Bitcoin will also be impacted.
And COIN in a pure technical analysis point of view is showing great evidence of a bottom formation and trend reversal.
Lets jump in!
Firstly, lets take a look at price action:
Firstly, lets acknowledge our MAJOR bearish resistance trend line depicted in RED.
This line has acted as resistance since the top in November 2021 and has pushed the price down to our lows and this range (white rectangle). Notice the red circles, which shows price being rejected off this line.
This shows how powerful this line has been depicted in the history of the price action. So breaking above it and maintaing support would be indicative of a reversal in trend, in my opinion.
Now notice the ORANGE resistance trend line. This trend is since August 2022 and indicates an intermediate resistance trend that also worked to push price down.
Another Resistance trend is the YELLOW trend line, from January of 2023, that acted as a short term resistance.
The upper rim of the white rectangle is also a crucial area to watch. From $64 to $84 is a heavy resistance area that needs observation. If we get above $84, getting to $160 is easy play as theres no price structure above $84.
This analysis is on the weekly timeframe. So we need to see what happens on the close of friday. But we are currently in the process of breaking through the RED and YELLOW resistance trend lines.
Though its possible this week pushes us down again. A double bottom can be at play which would be extremely BULLISH.
Its IMPORTANT to note -> More we touch trend lines, the weaker they get! And the Structure seen by WHITE rectangle, indicates a consolidation area and possible bottom of COIN.
Now lets take a look at some of my indicators:
1. Notice the light PURPLE moving average, the 21 weekly EMA. Notice how we've been battling this line and ow moving above it. This becoming support and staying above will be supportive of trend reversal.
2. RSI -> notice how we have lower highs. If we break above the upper white line drawn, and create a higher high. This will support trend reversal. Ill be observing this.
3. Wave Trend Oscillator - Notice the GREEN arrows. You don't even need knowledge of what these indicators depict, visually you can get so much out of them! Check how when the green line is on top of the red dots, price moves up..... Check our current progress, we are currently showing similar pattern. This can mean trend change.
CONCLUSION: Though as of today, its still premature to say that we will be breaking trend at the end of this week. I believe there is evidence to state that its the time to be watching COIN.
If we are above these lines come the friday close of weekly candle, next couple weeks would be important and places to watch for buying positions. However, if you see rejection it is possible that we go down lower, possible to the lower rim of the WHITE rectangle. That would be a double bottom play, and potential area where i buy large positions. My opinion within this WHITE rectangle range, solid area to DCA. Its also important to remember to watch BTC prices, if prices stays above 30k, the case for crypto stocks also becomes bullish, in my opinion.
ALl in All, Hope this helped. If you liked my analysis, please do help me out by boosting and if you like TA info and direction please follow and or check out my other ideas. Also, let me know what you think by commenting!
DISCLAIMER: This is not financial advice, i am not a financial advisor. This is strictly my opinions and for educational purposes. When trading/investing please do work to make your own strategies, never listen 100% to other people. Also always practice strong risk management strategies and use stop losses!
Thank you!
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