Coinbase's Market Outlook: A Simple Overview

Since Coinbase went public in April 2021, its stock price has taken quite a tumble. Looking at the weekly chart, we're in the middle of a downward trend, marked by a 5-wave cycle that's not looking too cheerful.

To shake off this gloomy forecast, the stock needs to climb above the peak of Wave (1), which is at $208. If it can't make that climb, there's a good chance it might revisit its lowest point ever at $31.55. There's a bit of a funny situation with the 50% extension target shown on the chart—it points to $-10, which obviously can't happen. 😅

Realistically, we're expecting the price might settle somewhere between $35 and $30, with a double bottom pattern seeming like the most likely scenario.

We'll keep an eye on things and see how it unfolds.

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For Coinbase, we've adjusted our scenario as we have invalidated the bearish scenario, and are now proceeding with a bullish outlook. Starting from the all-time low at $31.55, we must exercise caution with Coinbase. Although it correlates strongly with the crypto space, it is a stock with different characteristics and company structure. We believe we have completed the overarching Wave 3 and are now in a correction heading towards Wave 4. This correction should form a five-wave structure, as we've also developed an expanded flat upwards. Therefore, we believe it will overshoot downwards below Wave ((a)). The resistance at the top of the subordinate Wave ((iii)) could be very important, as it also lies at the 38.2% level, which we can assume for our Wave 4. Upwards, we expect an increase up to 50 to 61.8% for the overarching Wave (1). Currently, this will be adjusted depending on where Wave 4 specifically ends, but we are currently expecting it between $305 and $334, followed by a much stronger Wave (2) correction, but there's still a lot of time until then. The first thing we need to focus on is the fact that we should not exceed the high at $283.5 but should now see a five-wave downward structure.