With Bitcoin surging to two-week highs on Monday, we’re going to shine a spotlight on the world’s largest cryptocurrency platform: Coinbase.
Trump Seen as Pro Crypto Candidate
Monday’s rally in Bitcoin can be attributed to the attempted assassination on former President Donald Trump over the weekend. This incident has increased the likelihood of Trump winning the upcoming US presidential election, which traders view positively for the cryptocurrency market.
Trump, who is the presumptive Republican nominee, has been vocal about his support for cryptocurrency. He has hosted industry executives at Mar-a-Lago, endorsed US-based Bitcoin mining, and his campaign has accepted cryptocurrency payments, a first for a major US political party. This pro-crypto stance has fuelled optimism among investors, driving Bitcoin's price higher and subsequently boosting related stocks like Coinbase.
Coinbase's Market Reaction
As Bitcoin rallied, so did Coinbase. The largest centralised digital asset exchange in the US saw its shares leap 12%, marking its best performance since February. This surge underscores the symbiotic relationship between Bitcoin prices and the fortunes of crypto exchanges. In the first quarter (Q1), Bitcoin alone accounted for 33% of trading volume on Coinbase, highlighting its critical role in the exchange's ecosystem.
Technical Analysis of Coinbase
Coinbase's share price has been trending higher over the past year, with broken resistance levels often serving as support. Several technical indicators reflect this strength:
• Moving Averages: The 50-day moving average is comfortably above the 200-day moving average, indicating a strong upward trend.
• Price Action: Coinbase's price action cycles between sharp, volatile moves higher and periods of choppy sideways consolidation. After a significant rise in Q1, Coinbase spent Q2 forming a wedge consolidation pattern, moving sideways.
• Recent Performance: Monday's surge, backed by increased volume, has pushed prices toward the top of the wedge. A breakout from this wedge could signal the start of a new upward trend leg.
COIN Daily Candle Chart Past performance is not a reliable indicator of future results
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