Coinbase Falls to New Low While Bitcoin, Ethereum Hold Steady: What’s Next? – Coinbase Global (NASDAQ:COIN)

Coinbase Global, Inc COIN hit a new low on Monday as fear in the crypto sector continues to plague related stocks Sam Bankman-Frieds FTX disaster.

Bulls battled throughout the day to keep Coinbase above a psychologically important barrier of $40, but lower-than-average volume saw the stock consolidate mostly sideways on smaller time frames. Coinbase also held above the range because Bitcoin BTC/USD and Ethereum ETH/USD mostly traded sideways.

Cathie Wood‘s-led Ark Investment Management bought the dip on Friday, adding 78,982 shares of the cryptocurrency exchange to its holdings for a total position of about 5.7 million shares.

See also: Coinbase gets re-rated as analyst weighs scalable model balanced by limited revenue visibility

Wood, a staunch Bitcoin bull, has predicted the cryptocurrency will peak at $1 million by 2030, but has also given $400,000 and $500,000 price targets in the past.

The bottom may not be in for Coinbase as the stock started trading in a downtrend on December 6th after breaking bearishly from a rising channel pattern, which Benzinga called out on December 6th. If the $40 area holds and the market reacts bullishly to CPI data on Tuesday, Coinbase could get a boost due to a double bottom pattern that has formed.

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The coin base chart: Coinbase may have printed a double bottom pattern at $40 on Monday and Friday, holding close to the level. If Coinbase bounces on Tuesday, the stock will need to trade up above $44.15 to buck the current downtrend.

• If Coinbase falls below $39.65 on Tuesday, Monday’s intraday high will be the second-lowest high within the stock’s downtrend. Technically, Coinbase looks neutral because even though the stock is in a downtrend, Coinbase worked to print a possible inverted hammer candlestick on Monday, which could indicate that a higher top is on the horizon.
• Coinbase has also developed bullish divergence on the daily chart, suggesting higher prices may be in the cards. Bullish divergence occurs when a stock makes a series of lower lows, but its relative strength index makes a series of higher lows.
• Coinbase has resistance above at $44.15 and $50.34 and support below at $40 and lower psychologically important areas of $35 and $30.

Read next: Coinbase gets re-rated as analyst weighs scalable model balanced by limited revenue visibility