Tips for traders, 13 April 2021
With the upcoming listing of Coinbase in the US, crypto traders are divided into two conclusions on the impact on the price of Bitcoin. The projected valuation of Coinbase’s listing will be at around $100 billion, and the value of shares held by founders and employees will be approximately $35 billion.
With the direct listing route taken by Coinbase, there won’t be any obligation to vest the shares. Having said that, there are two potential scenarios happen. Firstly, they sell their shares (partially or wholly) and the price of the shares will go down but potentially they will buy Bitcoin. Secondly, they might not sell at all and no extra liquidity from them would flow into Bitcoin.
From a technical point of view, the price of Bitcoin is currently consolidating very close to its all-time high. There have been three consecutive days that Bitcoin failed to close above its resistance at approximately $61100. In the meantime, Bitcoin might form an inverted head and shoulders pattern which could open the door to a move upward to around $70000.
However, looking at the current volume that is declining, the upward thrust might be weaker, making the price unable to reach that level. In the meantime, $64000 to $66000 could be a strong resistance. Currently, with movement that tend to go sideways, short-term trades might make more sense than swing trades.