After the cryptocurrency dip, coinbase being the major world exchange was the one to be hit financially. The stock price dropped all the way from 235 to 66 currently. This dip was unprecedented given that crypto market was seemingly bullish. At this time, we believe coinbase is going to keep diving down. At the resistance level of 105, we see a major hurdle for the price to continue pushing up. Therefore, from there onwards, we will be shorting the market all the way towards the double bottom priced at 55. The structure across all time frames is heavily bearish with lower lows and lower highs.

The descending trendline would be our rejection point, once the market taps it. Also, in confluence with the  descending trendline, we do have a resistance area. Apart from this, there is no ascending trendline in formation which we could ascertain can induce a breakout sell.

The 61.8% retracement level is in confluence with the resistance. Given that we also have a trendline rejection possible at this region, having a 61.8% as a retracement area will substitue for our golden retracement level as a third technical factor.

EMA's are heavily bearish as well. The potential is EMA 50 being tapped and rejected is as probable as the descending trendline being rejected, as both of these technicals are going to tapping the resistance area, which has a major liquidity of sell orders. The death cross of the EMA's is still bearish.

RSI and CCI, both the oscillators are at their neutralized levels and might head up towards the over bought area. This over bought area has a probability of prices being at the resistance area. Therefore, once we see the over bought region tapped at the resistance level, we will be shorting the market.

Until the crypto revival for the bull market has happened, we believe, coinbase stock is going to continue to slide towards the downside.

Short stacks from 82

Jun 05 2022