Sector Malaise Drags Coinbase and MicroStrategy Lower

COIN Technical Analysis

The pre-market for Coinbase looks a little soft as the market has been in a bit of a slump recently, and with cryptocurrency struggling, it’s not a huge surprise. The market awaits earnings for Coinbase, but that’s not until the 30th of July, 2 weeks away.

The candlestick from the previous session on Monday was one of indecision, and a continuation of the selling pressure could very well present itself here. Recently, the $140 level has been a bit of support. So, if we do drop towards that area, we might take a look at this for potential bounce. We’ll just have to see how it behaves.

MSTR Technical Analysis

Strategy Incorporated continues to look miserable. The bearish flag that had been forming has been broken to the downside, and if technical analysis and measured moves hold, we could be looking at a potential target in the neighborhood of $35. Whether or not that actually happens, who knows?

For what it’s worth, though, the pre-market action is a little bit positive, but Strategy has been in a death spiral for quite some time. July of last year is when it started selling off, and it’s had a couple of bounces since then, but it’s been horrible. It looks as if Strategy will continue to be a very dangerous asset to own.

CRCL Technical Analysis

Circle looks like it is going to open lower as well. It is currently filling a gap from an earnings call in late February. If it breaks down below that gap, it shows a significant amount of bearish pressure. Typically, traders look to gaps for some type of answer, but it’s worth knowing that in this market, we had a gap from May 4th that was not only filled but broken below.

So, Circle may be struggling with the same malaise that a lot of cryptocurrency-related names and, quite frankly, cryptocurrencies themselves are dealing with right now. With that, it certainly looks as if the sellers are going to try to make some type of move. This is a very weak-looking stock in my opinion.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.