Coinbase jumps higher in step with Bitcoin: Where is the crypto platform headed next? – Coinbase Glb (NASDAQ:COIN)

Coinbase Global, Inc COIN gapped up around 4% on Friday, following Bitcoin, which started rising at 9pm on Thursday to trade up over 5% on Friday morning.

The gap up allowed Coinbase to get over a heavy resistance level just below the $70 mark. Coinbase has rejected this level since February 9, and has been unable to close a trade above the area.

The move higher also confirmed that Coinbase is trading in an uptrend pattern. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

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The higher highs indicate that the bulls are in control, while the intermittent higher lows indicate periods of consolidation.

Traders can use moving averages to identify an uptrend, with rising moving averages for lower timeframes (such as eight-day or 21-day exponential moving averages) indicating that the stock is in a steep short-term uptrend.

Rising long-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

The coin base chart: Coinbase hit a higher low on Wednesday at $61.18, negating its downtrend. On Friday, the stock hit a higher high. Wednesday’s retracement back tested the 200-day simple moving average (SMA), giving bulls confidence that a bigger move to the upside was on the horizon.

• If Coinbase is able to remain above the 200-day SMA for another day or two, the 50-day SMA will cross above the 200-day, which will cause a golden cross to form on Coinbase’s chart, which will suggest a long-term bull cycle may be on the horizon.
• If Coinbase closes Friday’s trading session near today’s high, the stock will print a bullish kicker candlestick. This may indicate that higher prices will return on Monday.
• If the stock ends the session with a long upper wick, Coinbase will print a star candlestick, which may indicate that the local top has occurred and the stock will trade sideways or lower on Monday.
• If Coinbase continues to move higher on Monday, the stock’s Relative Strength Index (RSI) will reach or exceed the 70% level. If that happens, Coinbase will reach overbought territory, likely indicating a pullback is on the horizon.
• Coinbase has resistance above at $83.32 and $100 and support below at $69.82 and $60.99.

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