If we find support at the first gap level, and see a strong reaction there could be potential for a technical short squeeze here.
Filing the most recent GAP in confluence with the 100 MA might be a support zone.
There are 3 possible scenarios I am going to look for, and they are illustrated in my attachments below.
Firstly, if Mara can close hourly candles above $32 range, we might seem strong buy pressure as we try to flip resistance.
Secondly, we are in a downtrend after a failed swing at $30 where we see a sharp rejection. Today, we have closed below my daily level at approx. $25, this level will be relatively important. If the price gets rejected at that price point, It would make sense to expect $22.50-$21.50. Finding support here, combined with good earnings may give this stock potential to run.
However, If we continue breaking down don't panic, as these would be my lower levels for a long term swing over a multiple month time frame. These levels I would consider averaging in at $17.55 and $14. If we drop lower, I would be treating it a buy opportunity that likely wont last for too long.
If we do see this massive pump It will simply be a technical short squeeze since Marathon earnings are at the end of the month on Feb 28th, which may be promising since Bitcoin was pumping towards the end of the year, even up until now.
That being said it might be likely to drop very quickly as stop-losses get triggered on the way down. So please be careful and try not to chase it.
Moreover, There is potential we are seeing a pullback in BTC as we are still in a technical uptrend unless we break and hold below $49k. I will link another chart below showcasing the BTC price breaking a weekly candle above the CC golden pocket 0.618. If we expect a correction, it would make sense at this resistance zone now, we would need this sign of rejection within the next 4 days when the next weekly candle will open. The low to hold above and bounce is the CC low at $48,400.
My third and last variant is the break below the current trend line as well as the gap below at $13/14 which would be an amazing long term entry. $Marathon Digital Holdings Inc(MARA)$
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