Benzinga
Published Jan 31, 2023 17:02
Updated Jan 31, 2023 18:10
Coinbase Pops Higher With Bitcoin, Ethereum: Can The Stock Regain This Key Indicator?
Benzinga - Coinbase Global, Inc (NASDAQ: COIN) opened slightly higher on Tuesday in tandem with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were rising.
The general market was also rebounding, with the S&P 500 popping up about 0.5%, which helped to buoy Coinbase higher.
Although Coinbase was spiking up over 3%, the stock remains in a short-term consolidation pattern. In Coinbase’s case, the consolidation is taking place within a double inside bar formation.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour charts or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar, and each is called an "inside bar."
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
The Coinbase Chart: On Monday, Coinbase printed an inside bar pattern, trading within Friday’s range. On Tuesday, the stock continued to trade within Friday’s range, which has settled Coinbase into a double inside bar pattern, which leans bullish because the stock was trading higher before entering into the consolidation pattern.
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