Marathon Digital Shows Strength Against Bitcoin As Traders Secretly Watch Stock – Marathon Digital Holdings (NASDAQ:MARA)

by James · April 17, 2023

Marathon Digital Holdings MARA opened at Friday’s low on Monday, in line with Bitcoin, which was down nearly 3%.

On Friday, Marathon Digital was mentioned on Benzinga’s Stock Whisper Index as a below-the-surface company that deserves attention because traders are secretly watching the stock.

Marathon Digital rallied 54% between April 10 and Friday, breaking through the 200-day simple moving average (SMA) on the daily chart after consolidating below that level since March 17.

The 200-day SMA is an important watch. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, while a stock trading below the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs, while when the 50-day SMA crosses above the 200-day, a bullish golden cross occurs.

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Marathon Digital Chart: Despite Bitcoin trading near the low of the day, traders entered Marathon Digital and bought the dip. The dip buyers saw Marathon Digital bounce off its intraday low to tap a bullish Marubozu candlestick, which could indicate higher prices will come on Tuesday.

Marathon Digital has been trading in an uptrend since March 10, making a consistent series of higher highs and higher lows. The stock’s most recent high was formed on Friday at $12.27 and the most recent high low was printed at the $7.65 mark on April 6.

If Marathon Digital bounces on Tuesday, Monday’s intraday low will act as the next highest low within the pattern, indicating that the uptrend is likely to continue. If Marathon Digital falls to lose support at the eight-day exponential moving average, the stock could retest support at the 200-day SMA.

Bullish traders want to see Marathon Digital continue to hold above the 200-day SMA, which will eventually lead to the 50-day SMA crossing above the 200-day. Bearish traders want to see big bearish volume come in and knock the stock down below the 200-day SMA.