Bitcoin (BTC/USD) has surged by over 40% in October and also hit a new all-time of $67000 on Wednesday, this was mainly due to increased optimism for bitcoin as it got accepted in the first exchange-traded fund for U.S investors.
Could Bitcoin hitting new highs trigger a rally in Coinbase Global Inc. (NASDAQ: COIN)?
Coinbase is up over 30% in October, however, this could just be the start of the rally.
Coinbase has a strong supply zone at $280, and it has given a strong breakout and is now heading towards a retest of the zone on Friday.
The RSI was in an overbought zone on Thursday which is an indication that Coinbase will be retesting the supply zone.
A long entry can be taken once a reversal is seen from the $280 supply zone.
Coinbase is looking very strong for the coming weeks, and a strong rally could also be seen.
The first target can be set at $350, and investors could also hold it for a new all-time high which could be hit in the coming months.
A stop-loss can be set below the supply zone at $268.
Are the charts on Friday suggesting a reversal?
Coinbase was in a downwards parallel channel on Thursday, however, it has given a breakout on Friday, this is suggesting that the reversal is almost here.
A bullish RSI divergence was also formed on Thursday, which is hinting towards a reversal very soon.
Conclusion
Coinbase could have a very strong rally in the coming weeks, and a long entry can also be taken once a reversal is seen. The Target can be set at $350, and investors who want to hold it for a longer period can set targets above the all-time high.
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