Coinbase (COIN)

Coinbase (COIN) EW-Analysis

Max Oen

— 2 min read
Coinbase (COIN) EW-Analysis
1 week

Coinbase develops a final Sell-Off Before the Next Bullish Cycle.

Coinbase initiated its first bullish movement in 2023, forming light blue wave 1, followed by light blue wave 2. From there, the dark blue cycle expanded into light blue wave 3. After the completion of light blue wave 3, the corrective light blue wave 4 developed and eventually terminated.

Subsequently, the light blue cycle concluded with light blue wave 5, which unfolded as green wave 1 of a higher degree.

Green wave 1 marks the current all-time high at $444.65. After reaching this major high, Coinbase started its first corrective movement and declined sharply. This correction is unfolding as green wave 2 and is expected to develop in a three-wave structure.

These three waves are identified as orange wave A, B, and C.

Currently, we expect orange wave A to be completed, with Coinbase now approaching a short-term recovery within orange wave B. For this recovery phase, we have defined a Fibonacci shorting or selling zone, which ranges between:

  • 50% retracement: $291.62
  • 61.8% retracement: $327.75
  • 78.6% retracement: $379.18

Within this zone, we expect the short-term recovery to end, followed by a final major sell-off forming orange wave C, which would complete green wave 2 and therefore the entire corrective phase.

For the completion of this correction, we have also identified a Fibonacci retracement accumulation zone, which represents potential long-term buying opportunities:

  • 78.6% retracement: $120.53
  • 88.6% retracement: $78.80

From our point of view, this zone represents prime buying opportunities, as we expect that after the completion of green wave 2, the market will regain strong bullish momentum and continue its long-term uptrend by forming green wave 3. In the long run, this wave should push the price to new highs beyond the current all-time high.

Coinbase remains a particularly interesting stock because it is highly correlated with Bitcoin. In addition, Coinbase acts as the main Bitcoin custodian for BlackRock, the world’s largest asset manager, which further increases the long-term relevance of the company.

If any structural changes occur or prices activate one of our Fibonacci zones, we will provide an update immediately.

Kind regards,
Monalytics

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