Hi everyone! Today let’s look at a cryptocurrency miner:
Marathon Digital Holdings, Inc. (NASDAQ: MARA)
The stock broke below its ascending channel (which I was tracking previously). This means that a retest of the 13.70-14.07 area is likely in the coming days. I have drawn a green ascending trendline, based on the higher lows that we made last year from October onwards. A break below this green TL is suggestive of a move down to the next supports at 12.28 and 10.48.
If we break below all 3 areas, then it is very likely that we have seen a notable shift in structure in MARA to the bearish side.
It is only fair for miners to be discounted relative to underlying BTC. As I mentioned in my previous article on MARA, the halving event is a short-term headwind and a long-term tailwind. Investors are (rightfully) concerned that miners cannot keep up their bottom line because the rewards are halved, but the historical tendency for BTC is for it to go up post-halving, which would soften the blow of halving.
The 13.70-14.07 test is almost inevitable though, given MARA’s tendency to fill gaps on both the upside and downside.
Sentiment: HOLD (Downgraded from BUY)
Summary (with Price Targets - NFA):
Broke down from ascending channel, with a retest of 13.70-14.07 area the most likely, as we head into the BTC halving event (est. 19th April)
Investors can average down on their MARA positions down to as low as 10.48. If we break the long-term orange trendline, then it signifies a change of structure to the bearish side.
All right, that’s all for this newsletter. Till next time!
$CME Bitcoin - main 2404(BTCmain)$ $Coinbase Global, Inc.(COIN)$ $MicroStrategy(MSTR)$ $Marathon Digital Holdings Inc(MARA)$ $Riot Platforms(RIOT)$ $CLSK
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