The earnings report far exceeded expectations, so why did the stock price drop? In fact, $Coinbase(COIN.US) is essentially a leveraged long position on BTC. Don’t think COIN can have an independent trend—that’s an illusion.
From BTC's rise from $15,000 to $73,000, the maximum pullback was less than 25%. There were a few instances—I can’t remember exactly how many—including the recent major pullback, which only reached around 22%, roughly at the $57,000 level. This cycle hasn’t seen a single 30% pullback yet.
What does this mean? It means the shakeout isn’t thorough enough—leveraged longs haven’t been wiped out yet. It means 'the market is too crowded!' If you want BTC to rally all the way to $150K or $200K this bull cycle, we’ll need an epic pullback first. The fact that there hasn’t even been a 30% correction yet is actually unfavorable for the subsequent trend.
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