- COIN stock closes higher on Thursday as stock markets bounce back.
- Bitcoin is staying strong and is trading just under $55,000.
- COIN has broken out of the downtrend and targets $300.
Thursday was a recovery day for global stock markets as numerous fears over Evergrande, interest rates and the US debt ceiling were put to one side. Retail interest stocks had suffered for the last number of sessions, and these also bounced back on Thursday. Crypto stocks are a hybrid with strong retail interest, but are also obviously closely linked to the performance of cryptocurrencies, and Bitcoin in particular. COIN has begun to generate some interest as Bitcoin has been strong. First, the cryptocurrency leader broke $50,000, and then it broke $55,000. It has not held the $55,000 level but has stabilized just below.
Usually, after a strong move, a period of consolidation is expected, which allows traders to accept the new higher price and prepare for more gains. All we want to see is for Bitcoin to consolidate, not fall back lower. Holding above $52,000 to $53,000 will create a bullish continuation pattern.
Coinbase (COIN) stock news
The recent surge in Bitcoin is due to Federal Reserve Chairman Jerome Powell saying there were no plans to ban it, which relieved some investors' fears as China has been cracking down heavily on cryptocurrencies. This set Bitcoin up to break above $50,000 and push on.
|Market Cap||$50.6 billion|
|Enterprise Value||$50.4 billion|
|52 week high||$ 429.54|
|52 week low||$208|
|Average Wall Street rating and price target||
Coinbase (COIN) stock forecast
Thursday's modest move higher marks three up days in a row for COIN stock, a nice change from recent trends. This has turned the stock bullish in our view. On Tuesday we said COIN will be bullish if it breaks $245.80 and this is duly what transpired on COIN stock, but we wanted confirmation of the move from the Relative Strength Index (RSI) and a crossover from the Moving Average Convergence Divergence (MACD) to confirm this. Both have since worked, and now COIN stock is targetting the post-earnings high of $294.
COIN shares have broken above a strong resistance zone with the 9, 21 and 100-day moving averages all converging at $240 to $242. The RSI is above 50, the MACD has crossed over, and above $265 there is a volume profile drop, meaning more gains could be easy to sustain.
FXStreet View: Bullish above $242.
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