Bitcoin turned lower in the early trading session in New York hours after establishing a record high of $64,850.
The flagship cryptocurrency’s sell-off occurred due to profit-taking sentiment, with the listing of Coinbase Global Inc.’s shares on the Nasdaq Stock Market providing further tailwinds to the move downside.
The Ticker “COIN” trading is set to begin on Wednesday, with unfound reports claiming that the share would open at $340. Nasdaq had set COIN’s reference value at $250. Some believe investors would sell their bitcoin for participating in COIN.
COINBASE GLOBAL CLASS A SHARES INDICATED TO OPEN AT $340 IN NASDAQ DEBUT VS REFERENCE PRICE OF $250 PER SHARE EDITED$COIN
— *Walter Bloomberg (@DeItaone) April 14, 2021
The listing earlier drew attention from speculators, pulling in new retail traders. That helped Bitcoin and its rivals, including Ethereum, XRP, Dogecoin, and others, log supersonic price rallies.
Bitcoin Technical Outlook
Bitcoin’s downside move appeared more technically-driven in nature. In retrospect, it pulled back only after failing to log a breakout above its interim ascending trendline resistance, as shown in the chart below.
Traders apprehensively decided to sell the pattern’s top to target the next immediate support near the 20-day moving average. The strategy has served bears well in the past few weeks: traders open a short position towards the green wave on a pullback from the Rising Wedge’s upper trendline, with the lower trendline serving as the primary downside target.
Meanwhile, traders open a long position towards the upper trendline on a bounce back from the lower trendline, with the 20-DMA serving as an intermediate upside target. Bitcoin’s correction into the US session seems like a part of the same strategy.
However, the Coinbase listing ensures that Bitcoin’s path of least risk remains to the upside. Therefore, the cryptocurrency could survive the latest sell-off attempt even if the price slips below $60,000. Many analysts note the trend would remain bullish as long as Bitcoin stays above the $59,000-level.
“Remember not to panic next time Bitcoin dips below 60k,” said Cheds, an independent market analyst.