The formation of a double bottom pattern sets COIN Stock Price for a significant upswing; should you buy?
Published 13 seconds ago
In the past six weeks, the Coinbase stock price has witnessed an aggressive correction phase. From the peak of $114.4, this asset lost a market value of 36.8% to reach the current low of $72.1. Such V-top reversal reflects intense supply pressure and rapid change in market sentiment. The falling COIN price has taken a temporary halt at $72.5 support, reflecting a slight hope of a bullish reversal.
Coinbase Stock Daily Chart: Key Points
- After a sharp downfall, the COIN stock price is expected to have a minor pullback to stabilize the bearish trend
- The stock price is witnessing high demand pressure at $74.5 support
- Under the influence of a double bottom pattern, the bullish reversal from $74.5 could set the asset price for a 13.7% rise
By the press time, the Coinbase stock price traded at $72.26 and is hovering above local support of $74.5. This horizontal level associated with a 61.8% Fibonacci retracement level creates a strong area of interest, where buyers can accumulate for a bullish reversal.
A look at the 4-hour time frame chart shows the asset price has rebounded thrice from the aforementioned in a week. If the bullish momentum persists, the buyers could trigger a minor pullback which is justifiable after an aggressive downfall, as it could assist sellers in recuperating bearish momentum.
However, a potential pullback may also form a double-bottom pattern. Under the influence of this setup, the coin price is expected to rise 6.68% and challenge the neckline resistance of $79.3.
Can COIN Stock Price Reclaim $80?
A double-bottom pattern is usually formed at the end of a downtrend, hinting at a high potential for a price reversal. The increasing accumulation at a horizontal support indicates an upswing which gains more momentum after the breakout of its neckline resistance. Therefore, if the Coin stock price breached the $79.3 barrier, the coin holders can expect a bullish recovery to $84.5.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.