Bitcoin (47,000 +/-) is trending and showing signs of a new leg higher as it trades (+325) in the premarket session. Blockchain stocks Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT) also exhibit activity suggesting they are seeing a bid in the stocks at the 21d and 200d moving averages.
Bitcoin
Bitcoin (BTC) rose over the past 24 hours as buyers defend support at the 9/21d emas and 200-day moving averages near $45,000 (+/-). The cryptocurrency was trading around $47,200 this morning and faces initial resistance near $50,000 (dashed horizontal line). Click to enlarge.
The breakout above $42,600 in the first week of August stalled as price action nears resistance (supply) on the charts. Buyers will likely remain active on pullbacks as companies continue their buying of crypto and related stocks.
In other news, CNBC reported that United Wholesale Mortgage, a special purpose acquisition (SPAC) merger, announced plans this week to accept cryptocurrency for home loans, in what is being billed as a first for the national mortgage industry.
The trend in companies accepting cryptocurrency is increasing, therefore we should expect elevated interest in bitcoin and blockchain stocks. Look for confirmation in above average volume and a markup in the sector as Phase II unfolds.
Coinbase, Ethereum and Grayscale
Coinbase, the major U.S. bitcoin and cryptocurrency exchange that made a much-hyped Nasdaq debut in April, has revealed it plans to add $500 million worth of crypto to its balance sheet.
The bitcoin and ethereum price, combined making up more than half of the $2 trillion crypto market, have surged this year, sparking a huge rally in many smaller cryptocurrencies. Source Forbes
Click to enlarge the charts.
COIN
ETHE
GBTC
COIN, ETHE and GBTC are considered ready. Tune in today as we discuss potential entries as all three are showing a BID at support. We currently have shares in COIN and ETHE, with plans to add to positions if the stocks remain in their respective trends above bullish 9/21/50/200d moving averages.
Marathon Digital and Riot Blockchain
Blackrock, the world’s largest asset manager with $9 trillion in assets, has taken significant stakes in two bitcoin miners, 6.71% in Marathon Digital Holdings and 6.61% in Riot Blockchain. – Forbes
Technically speaking, we are looking forward to bullish action over the next few weeks. Confirmation would be increasing volume as bitcoin legs higher. Oscillators are starting to turn. Click to enlarge.
MARA
RIOT
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Happy Trading,
Vinny
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