We expect Coinbase’s overall correction to not be finished yet. Instead, we believe the market is currently building a bullish short-term recovery phase. To identify the potential reversal areas, we have set two Fibonacci retracement zones.
In the short term, we expect the market to break above $213.50 and move toward our first Fibonacci retracement zone (red). This zone represents a short-selling area, as we expect the market to lose its short-term bullish momentum after reaching it and subsequently break back down under renewed bearish pressure.
Short Entry Levels:
- 50%: $291.62
- 61.8%: $327.75
- 78.6%: $379.18
From there, we expect the market to resume its decline and lose its bullish momentum, ultimately completing the overall corrective phase.
For the end of the longer-term corrective phase, we have identified a second Fibonacci retracement zone (green), which represents our target area for the completion of the correction.
This zone represents a long-term buying opportunity. As soon as the market breaks below $139.36, we expect Coinbase to move toward this zone.
Long Entry Levels:
- 78.6%: $120.53
- 88.7%: $78.80
Within this zone, you would be able to position yourself with extremely attractive long-term allocations at significantly lower prices.
However, there is also a possibility that Coinbase has already bottomed at its local low of $139.36 and completed its long-term correction with Green Wave 2. In this scenario, the market would now be starting a strong bullish impulse.
For now, we consider this scenario an alternative and will continue to follow our primary scenario, which expects the overall correction to continue.
If anything significant happens with this stock, we will update you immediately.
Kind regards,
Monalytics
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