Coinbase Stock Surges Alongside Bitcoin as Crypto Market Prepares for Rally
Coinbase Global, Inc. ($COIN) stock is experiencing significant growth in tandem with Bitcoin and the overall cryptocurrency market. Investors are turning to crypto stocks like $COIN as the market shows signs of a full-scale rally before the year ends.
According to market data from Yahoo Finance, $COIN has seen a 7.37% increase in pre-market trading on Monday, reaching $143.88. On Friday, the stock price closed at $133.76 after rallying by 7.25%.
Bitcoin Spot ETF Applications and Coinbase’s Role
As the crypto market eagerly awaits the Securities and Exchange Commission’s decision on Bitcoin spot exchange-traded funds (ETFs), Coinbase has already positioned itself ahead of the competition. Out of the 12 companies vying for ETF operation, nine have selected Coinbase as their custody services provider.
If approved, Bitcoin spot ETFs would revolutionize the industry by attracting institutional investors to buy shares of Bitcoin on traditional stock exchanges. This would simplify the investment process and validate the maturity of the crypto market.
Coinbase’s dominance as a custody services provider could greatly impact its stock price, which has surged by 325% since January and 91% in just two months.
Strong Support and Potential Growth for Coinbase Stock
Coinbase ($COIN) currently sits atop a robust support level of $130, bolstered by a bullish outlook indicated by the Moving Average Convergence Divergence (MACD) indicator. This has contributed to its pre-market trading price of $143.88.
Traders will be monitoring for higher support above $140, anticipating further upward movement towards highs above $150. The MACD’s position will serve as a signal for the stock’s next direction.
If the uptrend continues, COIN is likely to rise further and solidify the bullish thesis. However, a bearish cross, with the blue MACD line dropping below the red signal line, could indicate a potential trend reversal or consolidation.
Hot Take: Coinbase Stock Rides High on Crypto Market Momentum
Coinbase’s stock price surge aligns with the overall momentum of the crypto market, particularly Bitcoin. As the market anticipates a rally and eagerly awaits decisions on Bitcoin spot ETFs, Coinbase’s role as a custody services provider positions it for significant growth. This further validates the maturation of the crypto industry and simplifies investment processes for institutional investors. Traders are closely monitoring support levels and the MACD indicator to gauge future price movements for $COIN. With positive market sentiment and increasing adoption of cryptocurrencies, Coinbase’s stock is poised for continued success.
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