Coinbase (COIN: NASDAQ)
Coinbase (COIN) operates as a provider of crypto financial infrastructure and technology. As the company navigates the crypto landscape, it is anticipated that Coinbase may not announce significant cost-cutting measures similar to previous quarters. Stability is expected in Coinbase’s interest income, particularly as USDC market capitalization has shown more stability in the third quarter, and the bleeding in this regard has started to slow.
One of the primary bullish factors for Coinbase is the impending launch of the first-ever spot Bitcoin exchange-traded fund (ETF) for the U.S. market. The launch of this ETF has the potential to significantly boost Bitcoin prices and attract retail investors back into the market.
Additionally, the Bitcoin halving event scheduled for April 2024, where the reward for Bitcoin miners is halved, is anticipated to be a highly anticipated crypto event. This event, occurring once every four years, could generate significant attention and speculation in the crypto space.
The recommended bullish stance on COIN is contingent on the stock remaining above the $67.50-$68.00 level, with an upside target set at $114.00-$115.00.
S&P 500 Futures (ES1!)
The S&P 500 is approaching a crucial level, and there is potential for a head and shoulders pattern to develop. Traders are advised to monitor the price action carefully, particularly around the 200-day moving average (MA). If the price forms a right shoulder or a higher low near the 200-day MA and bullish candles emerge, it could present an opportunity for a long trade.
In this scenario, a stop-loss could be placed below the identified support level, and traders may aim to ride the upward momentum towards the resistance at 4,621. It’s essential to remain vigilant for confirmation of the pattern and to adapt trading strategies based on the evolving market conditions.
The anticipation for Ethereum (ETH) suggests a potential consolidation phase between the $2,030 support and the $2,140 resistance. This consolidation is expected to persist for a certain period. However, there is also the possibility of a bullish breakthrough beyond the $2,140 – $2,200 resistance area, with an upside potential reaching $2,300 – $2,500.
Despite being overbought on the daily timeframe, it is noted that assets can maintain an overbought condition for an extended period. Traders and investors are advised to be vigilant regarding potential price movements within this range.
In the event of a breach below $2,030, the next significant support is identified at the lower range boundary of $1,950. Monitoring key support and resistance levels is crucial for making informed decisions in response to market developments.
U.S. Dollar (DXY)
The U.S. Dollar Index (DXY) has reached the resistance area between 106.00 and 106.50, coinciding with the previous daily support line that originated in August. This support line, previously breached downward in early November, is now serving as potential resistance.
If the DXY faces rejection in this area and retraces, it could be interpreted as a bullish signal for the broader markets. Such a move implies a shift of capital from the safety of the U.S. Dollar to risk-on assets. The subsequent support levels to monitor are at 105.00 and then at 103.50.