Starbucks Stock Buzzes Higher Again After Accepting Bitcoin For Payment In El Salvador: What's Next?

On Wednesday Starbucks Corporation SBUX began accepting Bitcoin BTC/USD as payment in El Salvador following the country’s adoption of the cryptocurrency as legal tender. McDonald’s Corp MCD is also accepting Bitcoin as payment in El Salvador.

Ukraine became the fifth and latest country to legalize and regulate Bitcoin on Wednesday although the move will not benefit or disadvantage restaurants, retailers or services in the country because the crypto will not be recognized as legal tender.

As more countries adopt cryptocurrencies and more companies accept them as payment, the wild fluctuations in Bitcoin could begin to affect an increasing number of individual stocks similarly to how Bitcoin’s volatility can affect the stocks of PayPal Inc PYPL and Square Inc SQ, which have tied themselves more closely to Bitcoin this year by announcing plans to create branded wallets within their apps.

See Also: How to Buy Starbucks Stock

The Starbucks Chart: Starbucks continued higher on Wednesday after printing a bullish Marubozu candlestick on Tuesday. The stock reversed the trend after creating a bullish quadruple-bottom pattern on Aug. 19, Aug, 20, Aug. 26 and Aug. 27 near the $113.86 mark on the daily chart.

Since then, Starbucks’ stock has soared 5% higher making consistently higher highs and higher lows. On Wednesday the stock rose over the Aug. 26 high of $118.36, which confirmed the uptrend is intact.

Starbucks has a gap above between $123.44 and $124.49. Gaps on charts fill about 90% of the time so it's likely the stock will trade up into the range in the future. If Starbucks’s stock is able to regain the $120.83 level as support, the gap will be within easy reach.

Starbucks is trading above the eight-day and 21-day exponential moving averages and on Tuesday the eight-day EMA crossed above the 21-day, both of which are bullish indicators. The stock is also trading above the 200-day simple moving average which indicates overall sentiment is bullish.

• Bulls want to see sustained bullish volume to drive Starbucks up over its higher resistance and toward the gap. If the stock is able to fill the gap, it can make a run toward its July 23 all-time high of $126.32.
• Bears want to see Starbucks reject its upper resistance level and for big bearish volume to come in and drop the stock back down toward the $117.57 level. If Starbucks loses the level as support it could trade back down near $113.86.

Photo: Engin Akyurt from Pexels