Amidst bear markets, while everyone is in fear and panic, a giant corporate crypto bull has signaled bold moves. Cryptocurrencies do not always rise, and temporary corrections are familiar situations for seasoned investors. Now, a move by one of the largest corporate crypto bulls indicates that a decline may be imminent.
Will Cryptocurrencies Fall?
Ark Invest has consistently announced that it has increased its holdings while investors are in fear. The officials of the company, who firmly believe in the future of Bitcoin and cryptocurrencies, believe that a short-term decline is approaching. At least their recent move confirms this.
Coinbase (COIN) reached its highest weekly close since April 2022 last week. The closing also happened above the $100 horizontal resistance area. ARK Invest reduced its position in Coinbase shares by $26.23 million. This was the third sale in the past seven days. The flagship ETF fund “ARK Innovation” sold 127,266 shares, “ARK Next Generation” sold 44,784 shares, and “ARK Fintech” sold 76,788 shares.
The company’s sales indicate that the rise in crypto-focused assets may not continue in the coming days, due to the Federal Reserve or other reasons.
Should You Buy Cryptocurrencies?
Coinbase shares generally move in line with cryptocurrencies and its technical outlook can give us an idea about the overall market. The COIN price shows signs of an uptrend on the weekly and daily timeframes, which contradicts Ark Invest’s expectation of a decline. The COIN price has been rising since the beginning of the year. It formed a higher low in June and then accelerated its rate of increase. Last week, the price managed to close at $105.
Furthermore, the weekly RSI supports the ongoing uptrend. Considering both the price movement and wave count, the most likely scenario is an uptrend. Technical analysts using Elliott Wave theory expect the COIN price to make new highs at $150 and $170 levels. However, if the price of COIN shares falls below the resistance line of the channel, sentiment may reverse despite this bullish prediction.
Of course, Ark Invest or Coinbase alone cannot provide clear predictions about the future of the markets, but investors may expect some unexpected volatility in the coming days.
