A Look at Coinbase Shares in Q3 Earnings: Will Crypto Earnings Indicate Bullish Sentiment is Back? – Coinbase Global (NASDAQ:COIN)

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Coinbase Global, Inc. PIECE OF MONEY is set to print its fiscal third quarter financial results after the market closed on Thursday, and the stock was sliding lower ahead of the report.

When the cryptocurrency trading platform posted a massive second-quarter loss on August 9, the stock rebounded more than 7% the following day but then continued its downward trend, causing Coinbase to a low of $59.43 on September 23.

For the third quarter, analysts estimate that Coinbase will print a revenue loss of $2.40 per share on revenue of $659.88 million.

A crypto bear market during the third quarter likely affected Coinbase: Bear markets often lead to lower trading volume and fewer trades.

Coinbase guided the decline in monthly trading users and trading volume in the third quarter based on trends and conditions the company saw in July.

For the third quarter, Crypto traders and investors will be watching Coinbase’s share of revenue from Bitcoin and Ethereum trading, which may suggest whether interest in the crypto sector is rising or falling.

From a technical analysis perspective, Coinbase stock looks bearish in the long term but should rebound in the short term.

It should be noted that holding stocks or options on a profit impression is akin to gambling, as stocks can react bullish to a shortfall and bearish to a beat in profits.

Options traders, especially those who hold short-term call or put options, take on additional risk because the institutions selling the options increase the premiums to account for implied volatility.

For options traders with weekly calls to take advantage of Coinbase’s potential rise or fall to new lows, the stock will need to move more than 13.13%, which is the implied move institutions have taken. into account in calls and puts expiring this Friday.

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The Coinbase chart: Coinbase started trading sideways on August 19, between around $60 and $83. On Thursday, Coinbase broke lower from formation but has yet to confirm that a new downtrend will occur printing a lower high.

  • The stock was working to print an inverted hammer candlestick, which may indicate that a rebound is on the horizon. If Coinbase receives a bullish reaction to its earnings print and soars, bullish traders will want to see the action break above $84, indicating that Thursday’s price action was a trap. bear.
  • Bearish traders want to see Coinbase fall below the psychologically important $50 level, which could put the stock in danger of printing a new 52-week low. If that happens, a rebound will likely occur over the next few trading days as the Coinbase Relative Strength Index drops into oversold territory.
  • Coinbase has resistance above $60.99 and $83.32 and support below at $50.34 and $44.15.

See also: Coinbase petitions to file amicus curiae brief in support of Ripple in fight against SEC

Photo courtesy of Coinbase.

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