SEC Approved Bitcoin ETF: How This Major Move Could Surge Coinbase Stock Price | Don’t ignore this chart!

Are you feeling a little FOMO after seeing how the SEC’s approval boosts cryptocurrencies and other crypto-related assets? well. There may be bullish trading opportunities with Coinbase (COIN), the largest cryptocurrency exchange in the United States.

Coinbase’s stock is correlated with Bitcoin and is likely to benefit from this new regulatory development. Coinbase is in a downtrend, but I recommend adding the chart to your ChartList and watching it land and reverse.

StockCharts Ichimoku Scan to Find Coins

The good news is that Coinbase was one of the stocks filtered out in our StockCharts scan. Entered Ichimoku Cloud On Wednesday.

Why do I need this specific scan? This is because when entering the cloud, a downward trend is already present and the expected strength of the price can be confirmed through the current price and the color and thickness of the cloud for the next 26 periods.

COIN presents an interesting possibility in light of the SEC’s recent actions. Let us analyze the technical environment of the stock.

Coin: Technology Scenario

If you are bullish on cryptocurrencies and looking to invest in an exchange, get a bird’s eye view of COIN’s price action before looking in detail at specific entry points.

The chart below shows COIN’s price trajectory since its IPO launch in April 2021. Note the relatively close correlation with Bitcoin ($BTC), represented by the black line on the chart.

Chart 1. Weekly chart of the coin. Check out how closely the price of COIN is following the movement of Bitcoin ($BTCUSD).Chart source: StockCharts.com. For educational purposes.

The chart above captures COIN’s price movement since its IPO launch. Note the blue horizontal line connecting the August 2022 and July 2023 highs. These highs and a series of swing lows throughout 2022 and 2023 indicate a wide, long-term trading range that COIN may not be able to break through until November 2023.

But while this trading range appears Comparative Chaikin Money Flow (CMF) is static and lacks strong upward momentum., in contrast, rose dramatically (see red arrows tracing the upward path of CMF levels). As you know, CMF measures buying/selling pressure on a stock. And in this case, the shift from heavy selling to increased buying represents a bullish shift that is not evident from the price chart alone.

Those looking at long-term weekly charts may have anticipated COIN potentially bottoming in early 2023 as the CMF finally crossed the zero line and entered positive territory.

COIN is currently in a downward trend, but may find support at the previous resistance level where it recorded a breakout in November. But to get a clearer picture, let’s take a closer look at the daily chart and look for entry points.

The daily chart below includes the Stochastic Oscillator. In the bottom panel. The oscillator indicates that the price is at oversold levels. As the scan shows, COIN has entered the Ichimoku Cloud, which often acts as support (or resistance in the case of bears).

Chart 2. Daily chart of the coin. Fib retracement, cloud and stochastic oscillator provide green signals for “long” entry.Chart source: StockCharts.com. For educational purposes.

What is important is the larger context surrounding price entry into kumo (Ichimoku Cloud). Buying pressure is increasing on a weekly basis as measured by CMF, supporting COIN’s long-term upward trend. The clouds are green in color, and their extent has thickened somewhat from today, expected to be around 26 cycles.

To fine-tune your pullback measure, refer to the Fibonacci retracement levels from the October to December 2023 highs.

Optimistic traders can find favorable conditions. range We’re entering now, but as long as we pinpoint the ideal entry. point out, You will want to see a strong reversal candle in the next few sessions before taking a buy position. Assuming the entry point is above $115.05, which is the 61.8% Fib retracement level, we recommend setting a stop loss below $115, which is also the bottom of the (bullish) cloud.

conclusion

Considering the SEC’s approval of several Bitcoin ETFs, the environment for Coinbase (COIN) looks promising from both a fundamental and regulatory perspective. Technically, all indicators applied to the charts give a clear bullish green light on the entry. Of course, many factors can change market dynamics and investor sentiment, so it is important to enter any position cautiously.

Final thoughts: Scanning is important. In addition to the Ichimoku scan, there are hundreds of other scans available on StockCharts. Try them out and see which one fits your investment goals. Predefined scans are a good starting point, but you can also create your own scans.

How to run an Ichimoku scan (or other technical scan)

• Log in to your StockCharts account.
• movement dashboard In the Member Tools window, scroll to Reports and Other Items and click Next. sample scan library.
• The Ichimoku pattern is in the candlestick patterns section. Click Next. run Click the button next to Scan (in this case, type Ichimoku Cloud) and you will see a filtered list of stocks and ETFs.

disclaimer: This blog is written for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.