The Crypto Stocks are moving with BTC! Here’s Scott’s take on $COIN – March 22, 2022

by DAN COIN 
This is Scott with your Chart of the Day. I want to take a look at Coinbase ( NASDAQ: COIN ). As you can see Coinbase ( NASDAQ: COIN ) has been in a pretty well-defined downtrend since November. It pretty much topped when Bitcoin topped, it’s been under a lot of the major moving averages for most of this ride.

There have been some short-term swing trade opportunities on this but now really anything that I am interested in because I like to pay attention to, typically, flat price action. I love when a stock gives me a nice little base of support above some key moving averages.

That is what we are seeing right here with Coinbase ( NASDAQ: COIN ). You can see how we have some pretty sideways price action, last month or so it hasn’t really done much. We are back above the 21-day exponential period moving average, just under the 50-day, so the 50-day is finally catching up to price and Bitcoin is cooperating.

If I bring in the Bitcoin chart here, you can see I have some pretty clearly laid out support and resistance levels on BTC. What I like about Bitcoin is the fact that the moving averages are really starting to get stacked, they’re really close together. And as a swing trader, I love seeing the moving averages stacked together like this.

This gives me a little insight that we should probably be paying more attention to some of the Crypto stocks like Coinbase ( NASDAQ: COIN ). And so as I said, the stock has really just kind of going sideways here for a month. But if I bring up my little line tool we can draw some lines, bring it into an hourly chart, dial it in a bit, we see some clear tops here, here, and right there.

What we saw today was a move above this hourly downward sloping trendline on pretty good volume. It did come in a little bit into the close but it is still above that trendline. And so you definitely want to keep an eye out for a potential hourly trend change here on Coinbase ( NASDAQ: COIN ). And if that happens then Coinbase ( NASDAQ: COIN ) could potentially get above and stay above that 50-day moving average. That means, anyone who is short this stock, versus the 50-day, could cover, and then that could give us a little squeeze to the upside.

So that is what I am watching for here on Coinbase ( NASDAQ: COIN ) and an ultimate swing target, I would probably look to the underside of this 200-day moving average, that’s around 244.00, 245.00. I think it can get there if it can change the hourly trend, but I don’t think it is going to get there in a straight line. I think it is going to give you many opportunities to look for pullback buy entries close to the moving averages.

So keep an eye on Coinbase ( NASDAQ: COIN ) here over the next couple of days, couple of weeks. Obviously, it depends on what Bitcoin does, but that would be a nice little swing trade, even above the 50-day moving average, which is just under $200.00 to 245.00ish, about 25 percent. Not a bad swing trade return, in my opinion. But it has got to first get above and stay above that 50-day moving average, so keep an eye on Coinbase ( NASDAQ: COIN ).

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