- Bitcoin price fell by 7.5% over the weekend.
- Investors are still understanding new US crypto regulations released on Friday.
- COIN stock starts the week directly on top of the 21-day moving average.
Coinbase Global (COIN) stock opened on Monday down about 4.1% at $70.95. Despite Bitcoin making a rebound in the premarket by moving from $18,300 to $18,800, BTC lost about 7.5% from the closing of the equity market on Friday to the lowest price early on Monday.
Also read: Bitcoin price takes a small detour, but is $25,000 scenario still valid?
While COIN stock has opened the week sitting on top of the 21-day moving average, it appears likely that it will lose its support at $70 and drop back to $62 if the price of BTC continues to slide.
Coinbase stock news
Coinbase investors were thrown for a loop last week when the Biden administration released an executive order telling financial agencies to crack down on financial fraud and scams in the crypto space. The White House ordered the Securities & Exchange Commission (SEC) and the Commodity Futures Trading Comission (CFTC) to “aggressively pursue investigations and enforcement actions.” Additionally, there is said to be ongoing chatter about further regulations for crypto exchanges that would directly affect Coinbase.
Pro-crypto lobbyists and much of the industry is pushing to have the CFTC become the main regulator for crypto. This would only happen, however, if crypto becomes uniformly labeled as commodities. The CFTC is perceived as having a less aggressive approach to regulation compared with Gary Gensler’s crypto-skeptical SEC.
In other news, the CEO of Shopify, Tobi Lutke, has been buying up COIN stock. Between August 23 and September 13 his automated trading strategy bought a combined 21,130 shares of COIN. Lutke is on Coinbase’s board. The purchases, four in total, amount to an outlay of $1.5 million. Lutke also bought about $750,000 worth of Coinbase stock earlier in August. It is estimated that he now owns approximately $3.9 million in COIN stock.
Coinbase stock forecast
COIN opened right on the 21-day moving average, which is around $71.45 currently. Now that Coinbase stock is trending below here, around $70.50, it appears further weakness is ahead. This is a shame for bulls since the 9-day moving average only recently made the jump above the 21-day moving average. Now it will likely fall back to its bearish persuasion.
Mid-term support is at $62, and this is where your author thinks COIN will head next. A consolidation is normally in order when Bitcoin suffers a surprise weekend sell-off. The equity market is also in a risk-off mood ahead of the Fed announcement on interest rates this Wednesday, so expect this weakness to continue.
COIN 1-day chart