April 14, 2021 15:00
Today, one of the year’s most anticipated IPOs, Coinbase (COIN.US), has launched. Coinbase has more than 56 million customers, and will begin trading on Nasdaq. It will post a valuation of $49.19 billion after the starting reference price was set at $250 per share.
Instead of conducting an initial public offering (IPO), Coinbase has opted for a less traditional option, a direct listing, that has been used by companies such as Spotify in 2018, or more recently, Roblox. This facilitates the founders or employees with acquired rights to the shares, and investors the path to profitability since they do not have the need to sell a block of shares, avoiding obtaining new capital.
The excitement caused by the IPO of this giant is causing strong movements in the markets of cryptocurrencies, where Bitcoin and Ethereum have marked all-time highs at $64,748.80 and $2,397.49 respectively.
Since December 16, Bitcoin exceeded the level of $20,000, it has experienced a spectacular rise that has allowed it to multiply its value by 3 despite the large accumulated overbought that we can observe in the stochastic indicator on the weekly chart.
Source: Admiral Markets MetaTrader 5. BTCUSD weekly chart. Data range: from January 4, 2015 to April 14, 2021. Prepared on April 14, 2021 at 12:25 CEST. Keep in mind that past returns do not guarantee future returns.
In the daily chart, we can see that the first support level would be the area of $60,000 and its 18 session average that is close to the trend line of the triangular formation that it has been following in recent weeks. The price has a strong bearish divergence with its MACD indicator, so we cannot rule out that together with the accumulated overbought and the intrinsic volatility of this sector, the price may make some correction.
Source: Admiral Markets MetaTrader 5. BTCUSD daily chart. Data range: May 21, 2020 to April 14, 2021. Prepared on April 14, 2021 at 12:30 CEST. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 302.3%
- 2019: 94%
- 2018: -73.2%
- 2017: 1337.7%
- 2016: 124.1%
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