Coinbase (COIN) listing on Nasdaq could eventually boost cryptocurrency adoption and attract droves of institutional investors. However, that is unlikely to happen immediately. In the first few days after the listing, volatility could be high as Wall Street tries to value Coinbase. This could also increase the volatility in cryptocurrencies. 

Sharp movements in the price of Bitcoin (BTC) could also result in liquidations of leveraged positions in the derivatives market. The massive $27 billion in Bitcoin futures open interest and $8 billion in Ether (ETH) futures open interest indicate that a spike in volatility could chop several traders.

Daily cryptocurrency market performance. Source: Coin360

PlanB, the analyst behind the popular stock-to-flow price model for Bitcoin, cited the monthly Relative Strength Index (RSI) indicator and said that the current reading of above 92 is high but falls short of the 95 levels hit in the previous bull markets of 2017, 2013 and 2011.

According to PlanB’s calculation, Bitcoin’s price would have to rise to $92,000 by the end of April to push the RSI to 95.

Traders will keep a close watch on the price action in COIN and that is likely to determine the short-term sentiment. Let’s study the charts of the top-10 cryptocurrencies to identify the critical support and resistance levels.