Coinbase and Crypto Updates
With Coinbase's IPO coming coming this Wednesday (4/14), I want to provide a quick update regarding current events.
1) Coinbase's Q1 earnings have come out and they are certainly something to write home about: $1.8 Billion in revenue compared with $191 Million for Q1 2020 or $1.3 Billion for all of 2020 and approximately $750 million in net income compared to $32 million in the same time frame last year.
2) In the Bitcoin 4 hour price chart below, it can be seen that the price is consolidating. The approximate date where a positive or negative breakout is likely to occur is April 24th. In red, orange, green and blue we can see Exponential Moving Average (EMA) 20, 50, 100 and 200 day trend lines, respectively. The trends are in a healthy upswing with shorter EMA lengths being at a higher price than longer lengths. Recently the 20 day almost crossed below the 50 day but it came right back up. With Coinbase IPO and Wall Street jumping into crypto, I believe it is a very low probability for a bearish breakout. We are going to see a big jump in price as we get closer to the end of the month.
3) Last week JP Morgan, the same JP Morgan that claimed Bitcoin was a fraud, set a Bitcoin price target of $130,000. Crypto sentiment is changing and the sooner you invest in crypto the more you will profit from its ascension.
4) Whales are eying Bitcoin but are not heavily invested yet. Why not? High volatility. They would like Bitcoin volatility to match that of gold or a high market cap stock. This is changing fast. The market makers want all the money to come in that is possible, so exchanges and other large holders of Bitcoin appear to be reducing volatility by buying and selling at strategic times to hold the price in check. This is purely speculation, but I do not see any other way that the volatility could decrease so quickly in a few months time.
As mentioned above, this was meant to be a quick update. I have stock advice (non-crypto based stock) coming in the next newsletter so stay tuned!