COIN, MSTR and CRCL Forecast – Crypto Stocks Trying to Recover

Coinbase (COIN) Technical Analysis

The Coinbase market looks like it’s going to be just a touch positive opening up on Tuesday, building on that big gain from Monday, which of course was driven by the recovery in bitcoin. As it is a proxy for crypto trading, it makes a certain amount of sense that we would continue to see bullish pressure in this type of environment, but we do have a lot of overhead resistance near the $280 level. If the market can break above there, then it opens up the possibility of going to $300, and really, in this environment, I think it’s going to be dictated mainly by how bitcoin behaves. There does seem to be a floor right around $225.

MicroStrategy (MSTR) Technical Analysis

Strategy or MicroStrategy continues to look miserable despite the fact that it might open slightly positive on Tuesday. This is a market that has just been brutal to watch. Most of this probably comes down to the fact that it’s basically a play on bitcoin which, of course, has been pretty miserable. But the entire business is to accumulate bitcoin at this point. So, I think traders are starting to look at this as a bit of a joke, a meme stock if you will, in the sense that if you want bitcoin, just buy bitcoin. Why buy MicroStrategy? So, I think that’s a problem they’re going to have for a while, and this looks completely broken to me. Any bounce here, more likely than not, offers some type of selling opportunity.

Circle (CRCL) Technical Analysis

Finally, Circle looks like it is going to open a little bit higher, but it has to contend with the 50-day EMA at $93. If it can break above there, then it can rise perhaps all the way back to the $145 region. That would, of course, be a longer-term move, and Circle’s been absolutely obliterated right along with anything else crypto-related.

Its IPO price really isn’t too far below where we are, relatively speaking, considering that it opened at basically $69 and shot straight up in the air to almost hit $300, and here we are at $84.80. Pretty ugly scene here, but this isn’t actually that uncommon for IPOs. A lot of times, they’ll take off, they’ll collapse, and then they’ll eventually find their footing. So maybe a longer-term play, we’ll just have to wait and see, but this is another stock that I’d be very cautious with.

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