The Real Battle Over Bitcoin Begins

[Trading With Larry Benedict]( Larry’s Note: Bitcoin made news headlines last week as the SEC finally approved several Bitcoin spot ETFs – a much-anticipated decision. So you may be surprised to hear me say I don’t recommend buying Bitcoin right now. Instead, I’ve found a way you can profit from Bitcoin’s moves – without buying a single coin. And you can make even more using this strategy than by buying Bitcoin over the same time frame – even 22x more. If you’d like to learn how you can get in on my next trade, then please plan to join me on January 24 at 8 p.m. ET as I share all the details. [Simply go right here to RSVP](. The Real Battle Over Bitcoin Begins By Larry Benedict, editor, Trading With Larry Benedict A surging Bitcoin price saw Coinbase Global (COIN) rally hard into the end of last year. In just two months, the crypto exchange’s stock price gained around 167%. But after topping out in late December, COIN reversed sharply at the start of this year. And right now, it is fighting to hold the $150 level. On the one hand, COIN bulls believe that the SEC’s recent approval of Bitcoin spot ETFs should be a boon. After all, COIN is the chosen custodian for 8 out of the 11 SEC-approved Bitcoin ETFs. But longer term, the bears view these new ETFs as a direct competitor to COIN’s business. So let’s see what the chart is telling us from here… Recommended Link [Market Wizard who predicted negative indexes in 2022 shares shocking new forecast]( [image]( He had 20 straight years of winning trades without a single losing year that put his hedge fund in the top 1% of Barron’s rankings. He was one of the few experts who accurately predicted the 2022 stock market collapse. While most folks lost money, he showed those following his work how to avoid the carnage and profit from it. His secret? Keeping it simple. [Watch his video here.]( -- Surging Momentum The 50-day Moving Average (MA, blue line) in the chart below shows COIN gently tracking higher throughout 2023. But this longer-term average belies just how quickly COIN can move… Coinbase Global (COIN) [chart] Source: e-Signal From January to June last year, the 10-day MA (red line) and 50-day MA moved close together. But then momentum surged. The Relative Strength Index (RSI) broke strongly into its upper range (above the green line). And COIN’s price jumped. It took less than a month for COIN to double in price. The rate at which the 10-day MA accelerated above the 50-day MA reveals the strength of that move. After retracing, COIN tracked sideways again. You can see the 10-day and 50-day MAs tracking closely again from mid-August to early November. But then an even more explosive move broke out… This coincided with two technical signals: - The RSI had zig-zagged along support/resistance (the green line) from late August to November. Then it finally burst higher and gained traction in its upper range. So strong was the rally that the RSI remained overbought for more than half of COIN’s rally. - The 10-day MA finally crossed and accelerated above the 50-day MA again. That surge also dragged the longer-term 50-day MA sharply higher. But recently, the RSI began making lower highs (lower orange line). Yet COIN was still climbing (upper orange line). The chart pattern warned of a potential reversal. Take another look: Coinbase Global (COIN) [chart] Source: e-Signal Declining momentum eventually drags a stock price lower. And that is what we saw… As the RSI fell back toward support, COIN lost 23% (from top to bottom) in just three trading days. Now COIN is struggling to hold the $150 level. So what can we expect from here? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Testing Support COIN’s recent weakness might be a case of “selling the (SEC approval) news.” Yet there are several other things I’ll be watching from here. For a start, the RSI’s action around support/resistance will be key (red circle). If the RSI slips further into its lower band, COIN will also likely fall more. If so, COIN could soon test the $125 level. I’ll also keep a close eye on our two MAs. After peaking in July 2023, the 10-day MA reversed and steadily tracked lower toward the 50-day MA. If that pattern repeats, that will add further momentum to COIN’s down move. Regards, Larry Benedict Editor, Trading With Larry Benedict Mailbag Do you find the bull or bear case for Coinbase more persuasive? Share your thoughts at feedback@opportunistictrader.com. 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