Coinbase Stock News and Forecast: COIN advances on Thursday on Bitcoin breaking $30K
- Bitcoin has added nearly 7% over the past day.
- Coinbase stock rallied 7.6% on Monday.
- COIN is jumping ahead again on Tuesday.
- Bitcoin is above $30,000 for the first time in 10 months.
Coinbase (COIN) advanced another 3.2% to $68.25 at Tuesday’s open on the back of Bitcoin (BTC) retaining its perch above $30,000. Bitcoin has leapt 6.6% in the past 24 hours to $30,135. The leading cryptocurrency began Monday around $28,400 before quickly breaking through the $30,000 market and putting in a high near $30,325 late in the day. COIN stock already rallied 7.6% on Monday.
Other leading crypto stocks like Marathon Digital Holdings (MARA), up 6.2%, and Riot Platforms (RIOT), up 6.1%, also added to the frenzy. Michael Saylor’s MicroStrategy (MSTR) also rose 5.8%. This euphoria is contained in the crypto space, however, as the NASDAQ opened flat, while the S&P 500 and the Dow Jones were only barely green.
Coinbase stock news: Bitcoin leads the melee
This is the first time in 10 months that Bitcoin has popped above the $30,000 price level. It is hard to say what specifically led to Bitcoin’s sudden rally, as is usual in the space. Cryptominer CleanSpark only announced on Tuesday morning that it was purchasing $145 million worth of mining machines from Bitmain, but these will not be completely delivered until September. At that time CleanSpark will nearly double its total number of miners.
Following the collapse of Silicon Valley Bank in the US, Bitcoin saw a wave of buyers, but the price moved from $20,000 to $28,000 rather quickly before consolidating around the latter level for three straight weeks. It seems that consolidation phase is now over.
Coinbase derives about three quarters of its revenue from transaction volume, so higher crypto prices are sure to mean a better topline number for the quarter. Also, other prominent cryptocurrencies tend to follow in Bitcoin’s footsteps. Ethereum (ETH) has advanced 3.7% on Tuesday to $1,920.
Coinbase stock forecast
Coinbase was trading closely in line with Bitcoin for the first half of the last year, but then split apart last November. The graph below shows that COIN stock has lost more than 56% over the past year, while Bitcoin is down a more modest 23%.
Coinbase/Bitcoin price comparison, one year timeline
Currently, the 21-day moving average sits atop the 9-day moving average, which is normally bearish. Bitcoin is anything but calm however, and most bulls likely are focused on the double top at $85 that happened in early February and late March. Adding shares between $52 and $62 over the past two months gives them the necessary ammo if a triple top is in the cards.
Before that bulls will need to overpower last summer’s resistance point at $76. The Relative Strength Index (RSI) is showing a neutral print, so upside seems to lack a substantial barrier. Short-term support for now is at $62.
COIN daily chart