In our January 21 review of Coinbase ( COIN
) we wrote
that "The charts above suggest that the crypto market is going to fall on hard times. Avoid COIN." Since late January we have seen prices weaken further.
Friday Goldman Sachs lowered their price target on the cryptocurrency company that is a platform for buying, selling, transferring, and storing digital assets. Let's visit the charts again.
In this daily bar chart of COIN, below, we can see a pattern of lower highs since our last review. New lows were made in February and March, and April may keep the downtrend going. The slopes of both the 50-day average and the 200-day average are bearish.
The On-Balance-Volume (OBV) line has been weak since early November and is pointed lower. A weak OBV line means that sellers of COIN have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator looks like it is turning lower from an attempt to cross the zero line from below.
In this weekly Japanese candlestick chart of COIN, below, we don't have a lot of price history but what we have is bearish. I can see a number of upper shadows above $200 as traders are rejecting that area. No bottom reversal pattern is visible. The 40-week moving average line is pointed down. The MACD oscillator is bearish but has narrowed.
In this daily Point and Figure chart of COIN, below, we can see a potential downside price target around $128. (The price target from Goldman Sachs is $240 now.)
In this weekly Point and Figure chart of COIN, below, we can see a tentative $45 price objective.
In this weekly Japanese candlestick chart of the nearby Bitcoin future, below, we see a top reversal pattern over the three most recent candles. If Bitcoin futures weaken in the second quarter I suspect it will weaken the picture for COIN.
Bottom line strategy: Continue to avoid the long side of COIN.