{"id":2024,"date":"2024-03-13T00:04:27","date_gmt":"2024-03-13T00:04:27","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/13\/is-coinbase-stock-about-to-crater-heres-one-way-to-exploit-it\/"},"modified":"2024-03-13T00:04:27","modified_gmt":"2024-03-13T00:04:27","slug":"is-coinbase-stock-about-to-crater-heres-one-way-to-exploit-it","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/13\/is-coinbase-stock-about-to-crater-heres-one-way-to-exploit-it\/","title":{"rendered":"Is Coinbase Stock About to Crater? Here\u2019s One Way to Exploit It"},"content":{"rendered":"
\n

With an astounding SCTR score of 99.6, Coinbase (COIN) is soaring to the sun, but its wings of momentum appear to be melting.<\/p>\n

Despite hitting a two-year high (and Bitcoin hitting an all-time high), the entire crypto marketspace is in a foggy haze of confusion, stemming from the Federal Reserve\u2019s March 11 Bank Term Financing Program (BTFP) expiration (which can affect liquidity and affect various markets including Bitcoin), and the upcoming Bitcoin halving mid-April. COIN\u2019s potential bearish setup is clear. As an aside, it also came up as part of a bearish Filled Black Candles scan using StockCharts\u2019 scan engine.<\/p>\n

So, if you\u2019re looking to maul a few hopeful bulls in the near-term, here\u2019s your potential kill box.<\/p>\n

CHART 1. DAILY CHART OF COINBASE.<\/span><\/p>\n

The Relative Strength Index (RSI)<\/a> locates COIN\u2019s price, well within \u201coverbought\u201d territory. But if you look at the <\/span>Chaikin Money Flow (CMF)<\/a> reading, not only do you see a dramatic divergence between buying pressure and soaring prices, but the CMF is now below the zero line, hinting that <\/span>sellers are potentially taking over. <\/em>Yet if you look at the current candle, you see a strong rejection off the session lows<\/em>, meaning that a lot of buyers jumped in to create the \u201cpin bar\u201d that we now see (see blue circle highlighting the wick).<\/p>\n

So, what do you think might happen once price falls below the pin bars low?<\/p>\n

One Possible Way to Trade This<\/h2>\n

There are likely several stop losses right below the wick at $242.09 (see black dotted line). If prices fall below this level, it\u2019s likely to trigger a cascade of sell orders (stop losses).<\/p>\n

If you\u2019re looking to take advantage of this bear run, you might set a sell stop order to go short at $242.05.
\nYou might think of placing a stop loss (buy to cover) at $271.70 (just five cents above the most recent swing high).
\nYour first target would be anywhere in the range between the\u00a0 middle Bollinger Band<\/a> and the resistance line at approximately $188.00.<\/span>
\nYour second target would be at the support line located at $166.00, the last major swing low.<\/p>\n

Bear in mind that this is not a long-term trade but a short-term bearish opportunity. It has no bearing on any fundamental case\u2014bullish or bearish\u2014surrounding COIN\u2019s longer term prospects.<\/p>\n

The Bottom Line<\/h2>\n

Despite its stellar SCTR score of 99.6 and seemingly unstoppable ascent, Coinbase (COIN) may be flying too high, risking a dramatic fall. For those who smell a bearish opportunity, this potential descent offers a clear setup for entry and exits. Be careful! Going short the market can assume unlimited. Hence, the stop loss is a few cents above the highest high.<\/p>\n

How to Run a StockCharts Scan<\/h2>\n

Finding the right stocks and exchange-traded funds (ETFs) to trade can be tricky. But, with a little work, you can create a strategy that identifies a few promising prospects.<\/p>\n

Fortunately, it isn\u2019t too hard to learn how. Just stick to these steps:<\/p>\n

Select (or create) a few different scan criteria
\nBe sure to run these scans regularly
\nAnalyze the stocks (or ETFs) that your scan has identified
\nDetermine your overall trading setup (including your entry and exit criteria)<\/p>\n

The StockCharts Scan Engine<\/a> is useful for narrowing down stocks and ETFs that match certain requirements. It comes with a bunch of ready-made scans that are a good starting point. As you get the hang of these scans, you can adjust them or create new ones that align with your trading goals.<\/span><\/p>\n

For example, this article was prompted by a Runaway Gap Ups scan. As you can imagine, there are plenty more scans you can run. Try out the StockCharts Sample Scan Library (Charts & Tools > Sample Scan Library).<\/p>\n

Disclaimer:<\/em><\/strong> This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With an astounding SCTR score of 99.6, Coinbase (COIN) is soaring to the sun, but its wings of momentum appear to be melting. Despite hitting a two-year high (and Bitcoin hitting an all-time high), the entire crypto marketspace is in a foggy haze of confusion, stemming from the Federal Reserve\u2019s March 11 Bank Term Financing […]<\/p>\n","protected":false},"author":0,"featured_media":2025,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=2024"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2024\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/2025"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=2024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=2024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=2024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}