Coinbase Plunges While Bitcoin, Ethereum Holds Steady: Here's What's Happening

Coinbase Global, Inc COIN fell more than 12% on Wednesday, showing investor fear remains high after FTX filed for bankruptcy last week.

The news sent shockwaves through the crypto industry, and the extent of the fallout is still unclear. Coinbase thinks the FTX debacle could cause the crypto winter to extend into late 2023.

"Recent market turmoil and an absence of heavy buyers have left the asset class vulnerable, potentially extending an already lengthy crypto winter," the crypto exchange said Tuesday in a report.

Coinbase fell lower from a sideways trend before the crypto sector took a downward turn on November 8 as the stock suffered a negative reaction to its results missed in the third quarter on November 3.< /p>

Coinbase reacted more bearishly on Wednesday than Bitcoin BTC/USD and Ethereum ETH/USD, which slid around 2% and 2.5% respectively.

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The Coinbase Chart: Although Coinbase reversed its downtrend on Nov. 11 by printing a higher low, the stock has yet to confirm a new uptrend. If Coinbase breaks below $44.62 over the next few days, the most recent low could serve as a bullish trap and the downtrend could resume.

Coinbase could also form a triangle pattern which, coupled with the 43% decline between October 26 and November 9, could create a bearish flag on the chart. If the bearish flag pattern is recognized and Coinbase breaks away from the lower ascending trendline of the triangle, the measured movement suggests that Coinbase could dive towards $33. On Wednesday, Coinbase printed a bearish candlestick on the daily chart, which could indicate lower prices and a breakout of the triangle on the horizon. If Coinbase continues to hold within the triangle, the stock should hit the top on Nov. 22, indicating that a break up or down from the pattern is likely to occur before then. If Coinbase can break out of the triangle and regain support at the eight-day exponential moving average (EMA), the bear flag will be lifted. If this happens, Coinbase may start trading an uptrend. Coinbase has resistance above $50.34 and $60.99 and support below at $44.15 and $40.83.

See also: Sam Bankman-Fried is a 'criminal', says Coinbase CEO, calls out mainstream media for 'puff coins'

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