Coinbase (COIN) is currently displaying strong technical indicators ahead of its quarterly earnings release. With Bitcoin retesting its "final resistance level" at $100K and recent news of Coinbase acquiring crypto options platform Deribit, this rebound may signal the start of a new bull cycle.
Technical Analysis: Daily Chart Perspective
- Price Action: After bottoming near $150 in September 2024, COIN began a cyclical rise, peaking at $350 in early December. A 60% correction followed, retesting $150 by April 2025—completing a full retracement.
Key Indicators:
- The Percentage Price Oscillator (PPO) showed bullish divergence during April's lows, suggesting support at September's low levels.
- Recent weeks saw Coinbase rebound above the 50-day MA; crossing the 200-day MA would confirm a new uptrend.
Weekly Chart Confirms Bullish Structure
- Fibonacci Levels: The September 2024 and April 2025 lows align precisely with a 61.8% Fibonacci retracement from the 2023-2024 bull run, strengthening risk/reward assessments.
Long-Term Signals:
- The weekly PPO initially signaled bullish in October 2024 (post-bottom) and may repeat this signal soon.
- The 150-week MA—a critical long-term trend metric—coincides with recent lows.
Bitcoin's Momentum Fuels Coinbase Potential
Investing in Coinbase fundamentally ties to Bitcoin's performance. Current charts suggest further upside:
BTC Indicators:
- April 2025's low showed bullish divergence, propelling Bitcoin back toward $100K—a level not seen since February 2025.
- With BTC now above key MAs and RSI in overbought territory, this pattern mirrors past bull cycles.
👉 Why Bitcoin's breakout could redefine crypto markets
Market Implications
A successful Bitcoin breakout above $100K—and retest of its 2024-2025 highs—could position Coinbase and related crypto equities at the dawn of a sustained uptrend.
FAQs
Q: What does Coinbase’s acquisition of Deribit signify?
A: It expands Coinbase’s derivatives offerings, potentially capturing more institutional interest in crypto options trading.
Q: How reliable are Fibonacci retracements in crypto markets?
A: While not infallible, they often mark psychologically significant support/resistance levels due to trader consensus.
Q: Why is the 200-day MA critical for Coinbase’s stock?
A: Crossing it typically confirms long-term trend reversals, attracting momentum investors.
Q: Could Bitcoin’s rally stall at $100K?
A: Yes—this level represents strong historical resistance. A clean break requires sustained buying pressure.
Q: How does Coinbase’s stock correlate with Bitcoin?
A: COIN generally amplifies BTC’s movements due to its revenue dependency on crypto trading volumes.