The Coinbase Global (COIN) chart shows that the cryptocurrency exchange’s share price has dropped below:
→ the psychological $300 level,
→ the previous November low.
Bearish sentiment is largely linked to Bitcoin slipping below a key psychological threshold — as noted earlier this week, the market has seen widespread selling by long-term holders of the leading cryptocurrency.
Meanwhile, the overall share price picture is increasingly concerning.
Since July, COIN shares have underperformed broader stock indices, and price action has formed a descending channel, which is becoming more pronounced:
→ After forming two lower highs (points A and C), the price is now tracing a bearish 1-2-3-4 sequence, dropping below the intermediate low at B;
→ Analysis of COIN’s price action shows that yesterday’s decline occurred on expanding candles, suggesting that the $300 level — previously acting as support in August and September — could now become a resistance zone;
→ A close below $300 may pave the way for further declines towards the lower boundary of the channel.
On the other hand, bulls may hope that the dip attracts buy-the-dip investors. Notably, the previous break below $275 occurred in an aggressive manner (indicated by an arrow), which could help alleviate some bearish pressure.
Ultimately, the future trajectory of COIN shares will depend heavily on Bitcoin’s ability to reclaim the key $100k level.
