Technical analysis suggests the stock may retreat in the foreseeable future as it has formed an inverted C&H pattern.
COIN stock price is soaring today. It jumped by over 13%, continuing a recovery trend that started on February 12. This rebound happened as Bitcoin and other altcoins surged and as Cathie Wood continued her accumulation.
COIN Stock Jumps as Bitcoin Rally Continues
Coinbase stock price rose sharply, helped by the ongoing Bitcoin and altcoins rebound. Bitcoin jumped to $72,840 for the first time since February 3. It has now moved into a bull market after soaring by 20% from its lowest level in February.
Other altcoins resumed the upside, with Ethereum moving to $2,130 and XRP rising to $1.45. The market capitalization of all coins rose by 5% in the last 24 hours to over $2.42 trillion.
Coinbase, the biggest crypto exchange in the United States, often does well when cryptocurrencies are rising, as this normally leads to more volume. The volume in the last 24 hours jumped by 10% to $138 billion.
The ongoing Bitcoin price recovery is happening after the media reported that Iran had reached out to the United States for a deal on ending the war.
While no side has confirmed whether the outreach happened, such a move would be bullish for Bitcoin, cryptocurrencies, and the COIN stock. For one, the end of the war would reduce the risk of inflation in the US and other countries. It would also remove one of the biggest macro risks in the market.
The next important Bitcoin news will be the non-farm payrolls (NFP) report on Friday. A report released by ADP on Wednesday showed that the private sector created 68,000 jobs in February, lower than the median estimate of 70,000
Economists believe that the upcoming NFP data will show that the economy softened in February. A weak NFP report will be bullish for Bitcoin and Coinbase stock as it will lead to a higher chance of Federal Reserve interest rate cuts.
COIN stock also soared as Cathie Wood bought more shares for her three funds, a sign that she expects it to rebound. She also bought HOOD shares, a sign that she expects it to rebound.
Coinbase Stock Price Technical Analysis
The daily chart shows that the Coinbase share price has rebounded in the past few weeks, moving from a low of $142 on February 11 to the current $208. It has flipped the Supertrend indicator from red to green for the first time since October last year.
The stock also moved above the 50-day Exponential Moving Average (EMA), a highly bullish sign in technical analysis. It also jumped above the Strong, Pivot, and Reverse of the Murrey Math Lines tool.
Still, there is a risk that the COIN stock price is at risk of a bearish reversal as this rebound is part of the handle section of the inverted cup-and-handle pattern.
The bearish outlook will become invalid if it moves above the key resistance level at $250, the Major S&R Pivot Point of the Murrey Math Lines tool. A move above that level will point to more gains, potentially to $300.
