iBitcoin and related stocks have followed through this week rising out of a three to four week base on above average volume. Blockchain stocks, MARA and RIOT rallied, as prices clawed back to recent highs. That said, we need to be open to a potential double top, so we’ll watch for directon after the opening range (10:00 AM).
Bitcoin faded after market close Thursday and continues to show weakness this morning in early trading. If weakness persists we will take another look at these positions next week.
RSI, and Stochastic remained bullish into the close, while MACD is heading for a bullish cross. Volume increased this week, with three consequitive pocket pivots Tuesday, Wednesday and Thursday.
While we’re talking about RIOT, we have similar thoughts for MARA and GBTC. It would be best if the entire group rallies and bitcoin finds support above $55,000,
Bitcoin is weak going into the opening bell. We’ll wait for more information after 10:00 AM to confirm whether traders are interested today or not. The flip side of the trade of course is the potential for a double top on these stocks.
Bitcoin is currently off (-2.52%) this morning after tagging a new high of $58,719 on Thursday. Riot Blockchain (RIOT) gained for a fifth day. while Grayscale Bitcoin Trust (GBTC) rose for the past four days after a bullish reversal at its 50-day moving average last Friday. Bitcoin mining firm Marathon Digital (MARA) aslo gained. All three are off the recent highs going into the bell.
Riot Blockchain and Marathon Digital have garnered interest from Reddit’s WallStreetBets board. The Reddit trade was alive and well Friday, with GameStop (GME) (+10) pre-market, while AMC Entertainment (AMC) is off (-0.13). Palantir Technologies (PLTR) is currently lower (-0.75) this morning.