Coinbase Stock (COIN) to Pull off a Robinhood as Bitcoin Rises?

Coinbase stock (COIN) is pulling off a very important technical break right now during trading hours! Depending on how we close today, Coinbase stock may initiate a new uptrend! Something a lot of people have been patiently waiting for. Will Coinbase pull off a Robinhood?

I compare the two because many traders do so. Both had pretty bad IPO’s. Coinbase kept tanking, but Robinhood ended up rallying.

Robinhood Daily Chart — IPO opening was one of the worst debuts, but nobody talks about that now as you can see

Both are brokerages. Obviously there are big differences. Robinhood deals not just with crypto’s, but with the stock markets and commodities. Most of their revenue comes from options trading. Depending on retail traders to take as much trades in a day. Coinbase solely focuses on the crypto markets. Retail trading also composes the huge part of their revenues. As long as crypto’s remain popular and the retail crowd keeps trading them, it is good news for Coinbase stock.

Not sure if you have heard but crypto’s have been rocketing over the weekend and today! As I write this, I just witnessed Bitcoin rise $1000 in less than 15 minutes! The Ethereum chart has been my favorite cryptocurrency chart. Last week I discussed a major technical break, and revealed further resistance levels. You can read that here.

Ethereum Daily Chart — Ethereum Ripping will be a positive for Coinbase Stock!

Bitcoin isn’t too shabby, and is testing some important resistance levels. A big week ahead!

Bitcoin Daily Chart — Bitcoin has been popping leading to Cryptocurrency strength. This chart is super important for Coinbase Stock.

As long as crypto’s remain in a rally, Coinbase stock benefits! Why? Well the obvious reason is the retail crowd trading crypto which means more money for Coinbase. But remember: Coinbase stock is the traditional way for Wall Street to play cryptocurrency. When Coinbase IPO’d, I said how this was a watershed moment for cryptocurrencies. If an institutional fund does not want to hold actual crypto coins and tokens (due to the lack of regulations) then they can buy Coinbase. Yes, crypto miners are also an option, and also Grayscale Bitcoin Trust (GRAY). You could also buy stocks of companies holding crypto’s like Tesla, Square etc. But Coinbase just has the better exposure to crypto’s. It is a better cryptocurrency pure play.

Technical Tactics

As I said, a MAJOR technical break is about to occur on Coinbase stock. Depending on the close today, we will know if we initiate a new uptrend! But it is looking very likely.

Coinbase Daily Chart — Coinbase Stock Breaking Out and ready to go!

Regular Market Moment readers, and members of Equity Guru’s Discord Trading Channel are licking their lips at the moment they saw this chart set up. Meets so many of our criteria for a reversal.

We had a prolonged downtrend, which then turned to a range. A triple bottom holding support at $210 and then a breakout of the range at $260. This breakout of the range is huge in technical terms. It means the range has broken, but also means a new uptrend is beginning. Going forward, as long as Coinbase stock remains above $260, we will make a move higher.

Notice the two scenario’s I have on the chart. The first deals with price falling to hit $260 before taking off higher. This is how breakouts tend to move, and would be the preferred scenario. We want to see that retest. Sometimes it happens soon, but many times, the strong volume and interest in the stock leads to momentum higher. So much so that we see green candles multiple days before the pullback. That would be the second scenario. So $260 is the line in the sand heading forward. As a trade, one can keep their stop losses below this number and just ride the trend higher.

Upside target? There is a resistance zone around the $305 zone (my drawn line), and if that breaks, we start looking at $380 and then all time record highs!

So there we have it! If Coinbase Stock closes above $260 the breakout is confirmed. This seems very likely. Going forward we are bullish, but we may see a retest to $260 before taking off. A close back below $260 would nullify the uptrend and would be considered a fake out. More lows are then likely.

In summary, as long as crypto’s remain buoyed and popular, Coinbase Stock will have some momentum behind it. Bitcoin is the chart I am watching due to the resistance zone it is at. Oh and one more thing: EARNINGS. Coinbase releases earnings TOMORROW on the 10th. That will impact the stock.