Why MicroStrategy Not Coinbase When Bitcoin Build Its Rally

If we remember Bitcoin's all-time high is $73,738. 00 and was reached on 14 March 2024, are we going to see Bitcoin marching towards that level soon?

I think there are two crypto stocks we can look at if we wanted to take advantage of this trend. In this article, I would like to discuss and show the correlation with Bitcoin for these 2 crypto stocks, and how their technical analysis are stacking up.

Following MicroStrategy's investment in Bitcoin, the Pearson correlation coefficient rose to 0.92. The strong positive correlation now indicates that the company's stock price closely tracks the movements of Bitcoin, demonstrating a more direct relationship between the two.

If we looked at how MicroStrategy have responded to Bitcoin price rise, it looks like it is currently showing promising potential by trading above both the short-term and long-term MA, and the multi-timeframe are also showing signal that we could expect an uptrend if Bitcoin price continue to exhibit the upside.

If we were to look at Coinbase correlation to Bitcoin, it is not so strong I would think it is rather neutral, at 0.51, this would mean that Coinbase stock price might not react so positively to Bitcoin price movement if it moves upwards.

So to trade Coinbase, we can still monitor and look at the technical indicator.

We might not expect a strong positive move from Coinbase if Bitcoin continue to make another new highs.

So from the correlation and multi-timeframe, I would think that MicroStrategy might be a better crypto stocks to look at to take advantage of new highs that might be created by Bitcoin.

Appreciate if you could share your thoughts in the comment section whether you think Bitcoin would make a new highs near 70K and MicroStrategy would benefit from this rise.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.