Unveiling Trading Strategies For Coinbase Stock Ahead of Q4 Earnings Amid Soaring Bitcoin and Ethereum

Written By Michael Gary Scott


Coinbase Global’s Upcoming Earnings Report

Coinbase Global, Inc COIN is set to reveal its fiscal fourth-quarter financial results after the market closes on Thursday, and the stock was edging about 3.5% higher heading into the event.

When the cryptocurrency trading platform reported a third-quarter revenue beat on Nov. 2, the stock closed 1.4% higher the following day and subsequently continued to ascend steeply, reaching a Dec. 28 high of $187.39.

For that quarter, the company outperformed on the top line, with reported revenue of $674 million, surpassing a Street consensus estimate of $653.19 million.

For the fourth quarter, analysts project Coinbase will disclose earnings of 2 cents per share on revenues of $823.85 million.

Market Sentiment and Analyst Ratings

On Thursday, JPMorgan analyst Kenneth Worthington upgraded Coinbase from Underweight to Neutral rating and upheld an $80 price target, implying roughly 51% downside potential for the stock.

For the fourth quarter, crypto traders and investors will be keen to observe the portion of Coinbase’s revenue generated through Bitcoin and Ethereum trading, especially as both these premier cryptos saw substantial surges during the quarter, with Bitcoin skyrocketing almost 60% between Oct. 1 and Dec. 31.

Technical Analysis and Trading Strategies

From a technical analysis standpoint, Coinbase’s stock displays a mild bullish trend, trading strongly upward and potentially setting up a three-gap-up pattern, although showing signs of needing a pullback.

  • When a stock jumps higher twice consecutively, it may indicate a third-gap-up pattern on the horizon. If that occurs, Coinbase is likely to retrace to complete a three-gap-up-reversal formation.
  • Bearish traders would hope for Coinbase to close Thursday’s session flat or near the day’s low, triggering a bearish doji or shooting star candlestick, respectively.
  • Coinbase has resistance above at $177.45 and at $187.39, and support below at $162.20 and at $140.53.
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