Coinbase Climbs as Bitcoin Hits Two-Week High
With Bitcoin surging to two-week highs on Monday, we’re going to shine a spotlight on the world’s largest cryptocurrency platform: Coinbase.
Trump Seen as Pro Crypto Candidate
Monday’s rally in Bitcoin can be attributed to the attempted assassination on former President Donald Trump over the weekend. This incident has increased the likelihood of Trump winning the upcoming US presidential election, which traders view positively for the cryptocurrency market.
Trump, who is the presumptive Republican nominee, has been vocal about his support for cryptocurrency. He has hosted industry executives at Mar-a-Lago, endorsed US-based Bitcoin mining, and his campaign has accepted cryptocurrency payments, a first for a major US political party. This pro-crypto stance has fuelled optimism among investors, driving Bitcoin's price higher and subsequently boosting related stocks like Coinbase.
Coinbase's Market Reaction
As Bitcoin rallied, so did Coinbase. The largest centralised digital asset exchange in the US saw its shares leap 12%, marking its best performance since February. This surge underscores the symbiotic relationship between Bitcoin prices and the fortunes of crypto exchanges. In the first quarter (Q1), Bitcoin alone accounted for 33% of trading volume on Coinbase, highlighting its critical role in the exchange's ecosystem.
Technical Analysis of Coinbase
Coinbase's share price has been trending higher over the past year, with broken resistance levels often serving as support. Several technical indicators reflect this strength:
• Moving Averages: The 50-day moving average is comfortably above the 200-day moving average, indicating a strong upward trend.
• Price Action: Coinbase's price action cycles between sharp, volatile moves higher and periods of choppy sideways consolidation. After a significant rise in Q1, Coinbase spent Q2 forming a wedge consolidation pattern, moving sideways.
• Recent Performance: Monday's surge, backed by increased volume, has pushed prices toward the top of the wedge. A breakout from this wedge could signal the start of a new upward trend leg.
COIN Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Trump Seen as Pro Crypto Candidate
Monday’s rally in Bitcoin can be attributed to the attempted assassination on former President Donald Trump over the weekend. This incident has increased the likelihood of Trump winning the upcoming US presidential election, which traders view positively for the cryptocurrency market.
Trump, who is the presumptive Republican nominee, has been vocal about his support for cryptocurrency. He has hosted industry executives at Mar-a-Lago, endorsed US-based Bitcoin mining, and his campaign has accepted cryptocurrency payments, a first for a major US political party. This pro-crypto stance has fuelled optimism among investors, driving Bitcoin's price higher and subsequently boosting related stocks like Coinbase.
Coinbase's Market Reaction
As Bitcoin rallied, so did Coinbase. The largest centralised digital asset exchange in the US saw its shares leap 12%, marking its best performance since February. This surge underscores the symbiotic relationship between Bitcoin prices and the fortunes of crypto exchanges. In the first quarter (Q1), Bitcoin alone accounted for 33% of trading volume on Coinbase, highlighting its critical role in the exchange's ecosystem.
Technical Analysis of Coinbase
Coinbase's share price has been trending higher over the past year, with broken resistance levels often serving as support. Several technical indicators reflect this strength:
• Moving Averages: The 50-day moving average is comfortably above the 200-day moving average, indicating a strong upward trend.
• Price Action: Coinbase's price action cycles between sharp, volatile moves higher and periods of choppy sideways consolidation. After a significant rise in Q1, Coinbase spent Q2 forming a wedge consolidation pattern, moving sideways.
• Recent Performance: Monday's surge, backed by increased volume, has pushed prices toward the top of the wedge. A breakout from this wedge could signal the start of a new upward trend leg.
COIN Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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