Coinbase’s COIN starting the week by recording a new all-time low of $150.42.
Prices may trend lower in search of support.
Bitcoin must hold above $37,500 to avoid the same outlook.
Share this article
Coinbase has seen the market value of its COIN stock drop to a record low, increasing the risk of further losses. Although Bitcoin continues to hold above support, such pessimism could soon affect its price.
Coinbase Crash Spells Disaster for Bitcoin
Since Coinbase went public in April 2021, its stock performance has been highly correlated with Bitcoin. After a recent drop in the price of COIN, the top cryptocurrency could also suffer due to the close relationship between the assets.
Coinbase saw its stock plummet to a new all-time low of $150.42 Monday. The American cryptocurrency exchange, whose business model and outlook are highly dependent on the performance of Bitcoin, has been locked in a downtrend since early November 2021. As the broader crypto market has tumbled, it’s lost nearly 60% in market value. After experiencing significant losses, it appears that its price could dip lower.
COIN has breached a well-established support level at $164. Now, the Fibonacci retracement indicator, measured from May 19, 2021 low at $208 to the Nov. 9, 2021 high at $368.90, suggests that the stock could drop to form a new low at $141. However, if this interest point fails to serve as a strong foothold, the stock could dip toward the psychological $100 support level.
A pessimistic outlook for COIN could have a significant impact on Bitcoin given the high correlation coefficient of both assets. Since Coinbase went public via a direct listing, its price action has largely mirrored BTC’s market value. Nonetheless, the recent downswing that COIN suffered has not been reflected in the flagship cryptocurrency.
It remains to be seen how the markets will behave after today’s open, and whether Bitcoin could follow suit.
It is worth noting that a spike in selling pressure could translate into significant losses for Bitcoin. The 200-day moving average at $37,500 on the 3-day chart is BTC’s most significant support level. Breaching this demand zone could result in a steep nosedive to $28,700. For this reason, Bitcoin needs to hold above $37,500 to have a shot at breaking the 100-day moving average at $45,000.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
Coinbase Has Blocked 25,000 Addresses Linked to Russian Entities
Coinbase said it had blocked over 25,000 addresses linked to Russian individuals and entities it suspects of “engaging in illicit activity.” Coinbase Blocks Russian Entities As global sanctions cripple the…
Coinbase CEO Doubts Russian Oligarchs Will Turn to Crypto
Coinbase CEO Brian Armstrong has said that there isn’t a high risk of Russian oligarchs using crypto to avoid sanctions. Brian Armstrong Says Coinbase Will Follow the Law Coinbase CEO…
Canada’s OSC Flags Tweets From Coinbase, Kraken CEOs
The Ontario Securities Commission has flagged tweets from two cryptocurrency exchange leaders, according to The Logic. CEOs Criticize Crypto Restrictions On Feb. 14, Canada invoked its Emergencies Act in an…