November 6 Chart of the Day - Coinbase

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Shares of cryptocurrency exchange Coinbase (COIN) jumped nearly 30% today after stocks rallied as Republican party candidate Donald Trump was declared the winner of the 2024 US Presidential election.

Related to this was the fact Bitcoin soared to new all time highs (ATHs) as well reaching $77,140 in late day trading.

Coinbase revealed a new AI tool for creating AI-powered agents (which could include bots for trading, portfolio management, and even interacting with smart contracts) in less than three minutes so given all this we wanted to review their chart from a price action technical analysis perspective.

We have featured over 300 Charts of the Day since May 2023 and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

We don't typically review or trade charts with less than 5-10 years of historical data however when we notice that a chart with less than this amount of price action information moving in a technically correct orientation we have and occasionally will review and/or trade it.

On the monthly chart we can see that price since going public back in 2021 price fell significantly before establishing $31.55 as a definitive bottom in early 2023.

Since then, price has been making a series of higher highs and higher lows /aka/ an uptrend.

Weekly Chart

On the weekly chart we can see with much more clarity the fall and subsequent price ascent.  And in this case price respected the bear swing 61.8%  Fibonacci level in the $280 area providing an anticipated pull back.

In fact, price pulled back and reversed at the bull swing Fibonacci 50% level in the $160 area.

So with this type of price action behavior we decided to add a validated bull Fibonacci anchored roughly between $150 and $220.  Once again price pulled back in a very technically correct manner to the $180 before powering back to the upside.

Now, seemingly with a decision to make with potential overhead resistance price may continue to power through it or it could fade back to the downside.

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans. 

So what's next? 

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