Bitcoin’s ferocious resurgence in BTC/USD, which has risen more than 38% over the past month, was sparked by crypto miners Riot Platforms Inc. RIOT and Marathon Digital Holdings Inc. MARA.
Both stocks have achieved golden crosses (a technical milestone in which the 50-day moving average exceeds the 200-day moving average), increasing bullish momentum among traders.
Riot Platform: Riding the Bitcoin Wave
Riot Platforms has bounced back from a difficult year, riding the Bitcoin bull market and rising 35% in the last month.
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The stock is trading at $12.14, above its 50-day SMA of $10.18 and 200-day SMA of $10.18, both of which indicate bullish momentum.
Technical indicators reinforce this optimism. The MACD (Moving Average Convergence/Divergence) indicator is showing a bullish signal at 0.52, while the RSI (Relative Strength Index) is at a healthy 54.09, suggesting there are no overbought concerns and room for further upside. I'm doing it.
However, the stock is battling short-term resistance, with the 20-day SMA of $12.33 a potential ceiling. Investors appear cautiously optimistic and are watching Bitcoin's next move for clues about Riot's trajectory.
Related article: Michael Saylor, whose market capitalization and stock price have doubled in the past 3 months, speaks MARA about “Bitcoin standard”
Marathon Digital: A marathon, not a sprint
Benefiting from the strength of Bitcoin, Marathon Digital stock has soared 62% in the last month.
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It is trading at $25.13, comfortably above its 50-day SMA of $19.28 and 200-day SMA of $19.40, putting it firmly in bullish territory. A bullish signal on the MACD of 2.09 suggests strong momentum, while an RSI of 58.41 indicates room for further upside.
However, Marathon's near-term trends suggest turmoil ahead, with the stock trading just below its eight-day SMA of $25.84. Will the rise in Bitcoin encourage a breakout of the marathon resistance line, or will profit-taking be a drag?
Cryptocurrency Bull or Bear Trap?
As Bitcoin continues its rally, the golden cross of a rally and marathon is showing renewed optimism for investors. However, the volatile nature of both cryptocurrencies and these stocks means the road ahead is anything but smooth.
For now, Bitcoin's fate will determine whether these mining stocks can sustain their newfound momentum or whether this rally runs out of steam.
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