CONY: A Very Speculative Buy w/ Chart Pattern w/Bitcoin&Coinbase

4 apr

Fundamentals:
CONY is a covered call strategy. If bitcoin collapses again, the CONY will go bust. It could turn into a dividend trap. It is highly speculative. However, if bitcoin propels forward or goes sideways, then these two scenarios will be best for CONY.

Technicals:
Plan: To trade CONY buy observing health signals from bitcoin (BTCUSD).
Theory: Reading the tape is the same as identifying chart patterns with transaction volume.
BTCUSD is retesting its all time highs and consolidating.
BTCUSD has given two buy signals after re-testing all time highs: two morning stars on the daily chart.
BTCUSD daily uHd with extreme buy indicator.

Note: CONY today has issued a dividend of $2.7944 per share today; hence, the drop in the chart on CONY. Meanwhile, bitcoin has given a buy signal today. It is worth the risk.
Here is a daily chart of bitcoin with the buy signal:


CONY, itself, is within the 23.8% - 38% buy zone area of a large cup-with-handle pattern, after a minor successful cup-with-handle pattern within it that appear in February 2024.
If bitcoin does not collapse, then this could be the beginning of "wave b" or "wave 2" and end of minor 4th wave.

Comment:
I speculate that CONY will reach around $38 buy July or August 2024. The plan is to re-invest dividends along the way. I am treating the money invested as though all of it is gone, for now.

2 giu

Nota

Update:
Coinbase is what CONY is based upon. Bitcoins takes us about 35% of Coinbase's trading transactional volume and about 35% of their money coming in (revenue). The more people make transactions (buy and sale) in Coinbase, the more money they make. On the prospectus of several bitcoin ETFs, Coinbase is mentioned and serves as their custodian: HODL, ARKB, IBIT and many more. And usually, people are buying more bitcoin when there are good times, but when there are bad times more people will be reluctant to buy. These investors will get scared away. If there is an approval of the Ethereum ETF, and if Coinbase is named as a custodian on the Ethereum ETF, then this with marketing might entice buyers to make more transactions in the crypto space through Coinbase, which helps the bottom line and earnings of Coinbase. There was a fear that crypto ETFs would take away market share, but actually, it has helped Coinbase with being named as a custodian. That is something to look out for with a potential Ethereum ETF. Will Coinbase be named as a custodian on its prospectus? That would be a boon to more sales giving Coinbase more custodial fee revenue. So, you are correct. New bitcoin ETFs and new crypto ETFs will help drive retail traders back into the market for crypto. And given that Coinbase will be named as a custodian, that will generate for Coinbase more custodial fee revenue and hopefully this will be reflected in the stock's price going higher. But if crypto falls, I would imagine that less transactions will occur from the public. I have invested both in COIN itself and CONY. I have invested in COIN for price appreciation. Of course, all what was said above will help CONY too. However, in the end, I have used CONY just for dividend income without a care for price appreciation. So, COIN for price appreciation and CONY for a type of dividend strategy that I am using for it.

Update:
Ethereum (CRYPTO: ETH) ETFs were approved last week like I mentioned above. So, this will be a boost for Coinbase. Multiple firms have chosen Coinbase as the custodian.
theinformation.com/articles/how-coinbase-is-poised-for-a-win-from-ether-etfs