Marathon Digital Holdings Co., Ltd. Mara When Riot Blockchain, Inc Riot Exaggerated, plunging about 10% and 7% on Wednesday, respectively Bitcoin BTC / USD When Ethereum ETH / USDAbout 0.5% and 4% lower, respectively.
Cryptocurrency miners have been affected by both the crypto sector and the general market, which were very bearish in most of 2022, and a major upturn is imminent.
To make matters worse, the marathon announced that its mining operations were affected by a power outage caused by a storm that struck Montana a few weeks ago after the market closed on Tuesday. The company wants to reduce capacity and resume operations in the first week of July.
Both stocks plunged from a 52-week high, the marathon plunged about 93% from a high of $ 83.45, and the riots fell about 90% from a high of $ 46.28.
When inventories drop significantly, retailers and investors can be fooled into believing that the bottom must be near. Unfortunately, inventories can always go down, and both marathons and Rio can go that way.
From a technical point of view, Riot is slightly stronger than Marathon. This is because the former was the 52-week low of $ 4.34 on June 13th and June 16th. In contrast, the marathon was supported at a 52-week low before Wednesday and traded at levels not seen since December 15, 2020.
However, keep in mind that negative or positive reactions to events, revenue prints or news headlines that affect the general market can quickly invalidate patterns or breakouts. As the saying goes, “Trends are your friends until otherwise” and position traders need to set clear stops and manage risk vs. rewards.
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Marathon Digital Chart: The marathon has been trading on a sharp and fairly consistent downtrend since March 28, when stocks peaked at $ 32.74, with the latest lows printed at $ 7.76 on June 24, the latest confirmation. The low price was formed on June 16th at $ 6.27. On Wednesday, the marathon created a new low low, confirming that the downtrend is still intact.
- When the marathon closes the trading day near the lows of the day, the stock prints a bearish kicker candlestick. This may indicate that the lows will come again on Thursday. If that happens, traders will watch the stock eventually print a doji or inverted candlestick such as a hammer candlestick, and even if it only prints another low high, an imminent bounce. Indicates that may be in the middle.
- Bounces can occur in the coming days as the Marathon’s Relative Strength Index (RSI) has penetrated the oversold territory and is currently measured at around 29%. Despite the low RSI, the indicators are hitting a series of highs, causing a bullish divergence on the chart. This indicates that the bounce is likely to be in the middle.
- Marathon resistance is $ 5.70 and $ 7.79, and support is $ 3.11 and $ 1.82.
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Riot Blockchain Chart: Liat has been trading in a flat pattern since June 13, with stocks jumping from the $ 4.34 level in each of the three tests in the region as support. This could have created a bullish triple bottom pattern and short-term rallies could occur if the formation was recognized in the next few days.
- If the riot falls below its support level and hits a new 52-week low, it indicates that there is a new downtrend on the card.
- Like the marathon, the riots could bounce back in the next few days as the bullish divergence developed on the charts. For marathons, the divergence is exaggerated. This happens when the stock is trading sideways, but the RSI has a series of highs.
- Riots are up resistance at $ 5.54 and $ 7.25, with support below at $ 4.36 and $ 3.30.
