Could Bitcoin Signal a Breakout for Coinbase and Other Crypto Stocks This Week?

As the cryptocurrency market experiences notable movements, major players are positioning themselves for potential breakouts amid increasing institutional interest.

• Coinbase joins the S&P 500, signaling deeper crypto integration with traditional finance.

• Strategy buys 7,390 BTC as crypto stocks ride bullish momentum.

With Bitcoin (BTC) firmly holding above the $100K mark, optimism is spilling over into crypto-related equities. As nations worldwide begin to take cues from the U.S.’s progressive crypto approach, there’s growing momentum to position themselves as future crypto hubs, even in regions like India. Amidst this bullish wave, several major crypto firms are gaining traditional market recognition.

Companies like Coinbase (COIN), Galaxy Digital (GLXY), and Strategy Incorporated (MSTR) are now aligning more closely with mainstream stock indices, signaling a deepening integration of the digital asset sector with conventional finance.

Coinbase stock sees bullish rally

Coinbase (COIN) has officially joined the S&P 500, marking a significant achievement for the crypto exchange. While the listing reflects growing institutional acceptance, COIN saw a slight dip of 0.93% at the time of writing, according to Google Finance.

Nonetheless, the stock has surged over 32% in the past five days, underscoring strong market sentiment ahead of the announcement. This momentum comes despite recent concerns surrounding a data breach linked to third-party contractors, which affected less than 1% of users.

Technically, the bullish trend remains intact, supported by RSI indicators, though failure to hold above the $265 resistance could trigger a reversal below the $239.98 support.

Source: Trading View

Galaxy Digital joins the fray

Galaxy Digital (GLXY), the crypto investment firm founded by Mike Novogratz, made its Nasdaq debut on the 16th of May, opening at $23.50 per share. The listing marks the culmination of a lengthy four-year battle with the SEC, an ordeal Novogratz called both “grueling” and costly.

From a technical standpoint, the 15-minute chart indicates that bearish pressure still outweighs bullish momentum, despite the recent upward move.

Source: Trading View

But if buying strength picks up, GLXY could challenge resistance at $24.30, with a breakout potentially targeting the $30 range. However, maintaining the key support level at $23.91 is critical — a breakdown below this zone could drag the stock toward $22.11 or even sub-$20 levels.

Strategy is no exception

Wrapping up the momentum across crypto stocks, Strategy (formerly MicroStrategy) continues to reinforce its bullish stance on Bitcoin. Despite facing a class-action lawsuit, the firm acquired 7,390 BTC last week, worth nearly $765 million, bringing its total holdings further into record territory.

At press time, MSTR’s stock was hovering just below a crucial resistance at $428.46, while its RSI dipped to 61.60 from last week’s 67.51, hinting at waning momentum.

Source: Trading View

A breakout above resistance could send the stock toward $437.61, but if sellers regain control, downside targets at $390 and potentially $356 could come into play. Ergo, the stock’s trajectory, like the broader crypto sector, now hinges on whether bulls can sustain their grip.

Conclusion

In conclusion, as significant milestones are reached in the cryptocurrency space, the interplay between traditional finance and digital assets becomes ever more pronounced. The performance of stocks like Coinbase, Galaxy Digital, and Strategy reflects broader trends toward increased institutional investment. It remains to be seen if this momentum can be sustained, but the indications suggest a cautiously optimistic future for investors in the crypto sector.