Coinbase’s stock has risen by more than 140% since April. It is currently at the highest point it has been in 2021, when Coinbase reached its record high. The company’s market cap has increased to $90 billion making it the largest financial services provider in the US. The article explores the reasons why COIN’s share price will soon explode.
Coinbase’s stock price explodes as Bitcoin approaches breakout
Bitcoin’s breakout following days of consolidation is likely to be the main catalyst that drives the Coinbase stock price upward.
As the chart shows, Bitcoin is slightly below the trendline ascendant that links the biggest swings from December 2017. The price of Bitcoin failed to rise above this level between April 2021 and November 2020, as well as in January and May 2019.
Bitcoin formed two round bottoms during this time. My expectation is therefore that BTC will surge over the top of the ascending trendline. A move over the line that spans several years will probably lead to greater gains on the long-term.
Bitcoin Price Prediction: BTC Path to $300,000.
The chart of the Bitcoin price on a shorter timeframe indicates that the next few weeks will see more gains. The chart has a pattern of a bullish banner, which is made up of a vertical tall line and a channel descending. This pattern usually leads to greater gains with time.
Bitcoin also has a cup and handle pattern that consists of a bottom rounded, as well as a consolidation. The consolidation in this instance is part of handle section.
The most probable scenario, therefore, is that Bitcoin’s price will make a big comeback within the next few months. Bitcoin’s price could reach at least $150.000 by the end of this year if this scenario occurs.
COIN Stocks Rise When Bitcoin is Jumping
Coinbase is also bullish on a strong Bitcoin comeback for three reasons. Coinbase’s shares tend to do better when Bitcoin prices are in an uptrend, and fall when Bitcoin prices are falling. The overall sentiment of the market is often responsible for this performance.
Coinbase, with its 9,260 Bitcoins valued at over $1 billion, is the second largest Bitcoin holder on Wall Street. Coinbase balance sheets improve when BTC goes up.
Coinbase, a leading player in the industry of staking, is one company that has seen its altcoins rise over time. Higher prices also lead to more transactions which is beneficial for Coinbase as well as other companies.
Coinbase, the largest custodian of the Bitcoin and Ethereum ETFs in the market, is also benefitting from the inflows. Inflows into spot Bitcoin ETFs reached almost $50 billion this year. Ethereum is nearing $4 billion.
Coinbase Share Price Analysis
COIN’s share price has increased in recent months, as shown by the daily chart. The 50-day and the 200-day moving averages crossed, forming a golden-cross pattern.
The Coinbase stock formed a cup and handle pattern. This is a bullish continuation signal. The pattern is characterized by a bottom with rounded edges and some consolidation.
This cup is about 58% deep. If you measure the percentage on its top, it would be $551. That’s a 55% increase from where we are now.
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