After sliding to its fresh two-week lows in the last trading session, Coinbase stock price has rebounded very strongly. The shares of the leading crypto bourse and the digital asset custodian opened higher on Wednesday and were up 1.69% till press time.
The price action of Coinbase shares is being affected by multiple factors. These factors include the ongoing correction in the crypto markets and the upcoming FOMC decision. The meeting of the FOMC members, which decides the interest rates in the US, began on Tuesday and will announce its decision today at 2 pm ET.
Bitcoin price fell to $60,770 in the early hours of Wednesday as the correction in the digital assets intensified. However, the strong demand pushed the price higher. Consequently, the pioneering digital asset was changing hands at $63,600 at the time of writing. This strong recovery also explains the $1.69% uptick in Coinbase stock.
The benchmark S&P 500 index slid by 5 points in the opening hours of trading. The pullback comes after the index hit the fresh weekly highs at 5,181.69 points. Due to the impending FOMC decision, the volatility will likely increase in equity markets as the trading session progresses.
As global crypto markets enter another bulls season, Coinbase is eyeing major expansion. According to the latest Coinbase news, the company intends to raise $1 billion by selling convertible notes. As per the details, the offering will have an extra provision to ensure less dilution during conversion.
The following NASDAQ: COIN chart shows the major support and resistance levels on the daily timeframe. Technical analysis reveals that while the long-term Coinbase stock price prediction is still bullish, it can still retest the $208 support level on the lower timeframe.
The stock price of the biggest US crypto exchange pivoted close to the 38.2% fib retracement level, but another retest might be around the corner. However, if the Bitcoin price remains stable and the equity markets don't enter into a significant correction, there is a strong possibility that COIN targets the supply zone that lies above $295 in the coming months.
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