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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