Riot Blockchain, Marathon Digital Shares Roar as Bitcoin Price Rises
2023-03-30 04:45:00 ET
Crypto mining stocks roared back as cryptocurrencies continued their comeback. Riot Blockchain ( NASDAQ: RIOT ) and Marathon Digital ( NASDAQ: MARA ) jumped ~13% and ~10%, respectively, on Wednesday.
The Bitcoin exchange rate is $30,000
The crypto industry has had a mixed week. On the one hand, Bitcoin and other altcoins have made a strong comeback. Bitcoin is now near its highest level since last June, while the total market capitalization of all coins has jumped to over $1.2 trillion.
At press time, Bitcoin was trading at $28,600, which means it is about to move above its highest level so far this year. If this happens, it will likely attract more buyers, which will push it to the next key target of $30,000. More upside above that will bring the next key resistance point of $40,000 to watch.
On the other hand, regulatory scrutiny of the sector was intensified this week. The Commodity Futures Trading Commission (CFTC) launched a major lawsuit against Binance, the largest exchange in the world.
And last week, the Securities and Exchange Commission (SEC) warned that it will sue Coinbase over its betting products.
Therefore, the current price action is mostly because investors believe that the crypto industry will weather this regulatory storm. It is also a reflection that traders expect the Fed to change its tone on monetary policy this year.
Riot Blockchain Stock Price Forecast
RIOT chart by TradingView
On the daily chart, we see that the RIOT share price has been in a slow upward trend for the past few weeks. It has jumped 175% from its low this year, signaling that investors expect mining to boom.
RIOT shares have jumped above key resistance at $7.76, the February 2 high. It has moved above the 25-day and 50-day moving averages. Therefore, the outlook for the stock is bullish, with the next key level to watch being at $10.57, the August 11 high.
Marathon Digital stock price forecast
MARA chart by TradingView
The MARA share price has been in a slow bullish trend for the past few days. It has formed a symmetrical triangle pattern that appears in green. Unlike Riot, the stock fluctuates with its 25-day and 50-day moving averages.
Therefore, with the triangle pattern approaching the confluence point, the stock is likely to have a short-term breakout. This view will be confirmed if Bitcoin continues to rise. As such, the key level to watch will be $15.7, the October 26 high.
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