Hi guys! This is a technical analysis on Coinbase (COIN) on the 1 Week timeframe.
On the week of July 10th, we ATTEMPTED to try and break through the $116 ish level, which is the level where our GREEN rectangle Resistance zone begins.
BUT got rejected and have been in a DECLINE for about 4 weeks including this week.
Note: This weeks candle has not yet closed and we have to wait till end of week.
Notice the 2 RED circles, highlighting 2 seperate times where we tested the MAJOR RESISTANCE ZONE.
-> This can very well be a DOUBLE TOP.
-> Which can support a continuation of the downside action.
We are currently TESTING SUPPORT at the upper border of my BLACK rectangle zone
This coincides with the 0.618 FIB level or the $84.07 level.
Since we havent closed yet, watch how we react here -> with a potential of price bouncing to the upside.
If we end up below, and in the coming weeks CONFIRM below:
Our next level will be the 0.5 FIB Level, which is at 73.99
Here the 21 EMA also converges at this point
This could be a STRONG SUPPORT zone due to the confluence of 2 SUPPORT levels.
This could then be a BUY ZONE, area to Scale in.
We can also look to the 0.382 FIB level or $63.91
This level converges with the RESISTANCE Turned SUPPORT line from the price top.
This is another level, provided the 0.5 FIB level fails to hold -> WHere you can add BUY ORDERS
STOCH RSI indicator -> Had a BEARISH Cross and we are currently below the 80 level. If we continue down, we can reach and stay below the 20 level for some time. This normally leads to PRICE DECLINES.
Wave trend oscillator -> We have reached at area where the GREEN line is starting to show curvature to the downside. If it continues this pattern, itll add to the probability of price DECLINES.
Finally the RSI - Watch how the Orange line interacts with Black line, if Orange crosses below -> it normally indicates that we are in a price decline.
"COINCLUSION" (See what i did there, lol):
The Week of July 10, we attempted to test resistance to enter the GREEN REsistance zone, to only meet with REJECTION. This had lead to a correction in COIN, moving us to test the 0.618 FIB level. The area which converges with our Upper border of Black Rectangle/ Resistance turned Support. This area can be a place where we could bounce in price to try and reclaim the 0.786 FIB level. But if we cant HOLD 0.618, our next level will be 0.5 FIB level. This area due it being a strong support zone, can be an ENTRY point for potential trades or scaling in/ DCA'ing. Worst case is below that level at the 0.382 FIB level, which can also be a 2nd BUY ZONE. We would like to be ABOVE the 21 EMA though, to maintain the Bullish case. Always make sure to wait for confirmation before placing BUY orders.
For example: if we confirm SUPPORT above 0.618, we can have a potential bounce back to the 0.786 FIB level. So you wouldn't short but Long.
Stay tuned for more updates on COIN in the near future.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
On the week of July 10th, we ATTEMPTED to try and break through the $116 ish level, which is the level where our GREEN rectangle Resistance zone begins.
BUT got rejected and have been in a DECLINE for about 4 weeks including this week.
Note: This weeks candle has not yet closed and we have to wait till end of week.
Notice the 2 RED circles, highlighting 2 seperate times where we tested the MAJOR RESISTANCE ZONE.
-> This can very well be a DOUBLE TOP.
-> Which can support a continuation of the downside action.
We are currently TESTING SUPPORT at the upper border of my BLACK rectangle zone
This coincides with the 0.618 FIB level or the $84.07 level.
Since we havent closed yet, watch how we react here -> with a potential of price bouncing to the upside.
If we end up below, and in the coming weeks CONFIRM below:
Our next level will be the 0.5 FIB Level, which is at 73.99
Here the 21 EMA also converges at this point
This could be a STRONG SUPPORT zone due to the confluence of 2 SUPPORT levels.
This could then be a BUY ZONE, area to Scale in.
We can also look to the 0.382 FIB level or $63.91
This level converges with the RESISTANCE Turned SUPPORT line from the price top.
This is another level, provided the 0.5 FIB level fails to hold -> WHere you can add BUY ORDERS
STOCH RSI indicator -> Had a BEARISH Cross and we are currently below the 80 level. If we continue down, we can reach and stay below the 20 level for some time. This normally leads to PRICE DECLINES.
Wave trend oscillator -> We have reached at area where the GREEN line is starting to show curvature to the downside. If it continues this pattern, itll add to the probability of price DECLINES.
Finally the RSI - Watch how the Orange line interacts with Black line, if Orange crosses below -> it normally indicates that we are in a price decline.
"COINCLUSION" (See what i did there, lol):
The Week of July 10, we attempted to test resistance to enter the GREEN REsistance zone, to only meet with REJECTION. This had lead to a correction in COIN, moving us to test the 0.618 FIB level. The area which converges with our Upper border of Black Rectangle/ Resistance turned Support. This area can be a place where we could bounce in price to try and reclaim the 0.786 FIB level. But if we cant HOLD 0.618, our next level will be 0.5 FIB level. This area due it being a strong support zone, can be an ENTRY point for potential trades or scaling in/ DCA'ing. Worst case is below that level at the 0.382 FIB level, which can also be a 2nd BUY ZONE. We would like to be ABOVE the 21 EMA though, to maintain the Bullish case. Always make sure to wait for confirmation before placing BUY orders.
For example: if we confirm SUPPORT above 0.618, we can have a potential bounce back to the 0.786 FIB level. So you wouldn't short but Long.
Stay tuned for more updates on COIN in the near future.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
