Cryptocurrencies are showing big signs of life again. Look at Bitcoin, for example. After crashing to a low of $19,097, BTC is now back up to $22,960. Not only is that great news for cryptocurrencies, it’s a strong catalyst for…
mining stocks, like Marathon Digital Holdings (NASDAQ: MARA).
After all, miners rise and fall with the price of Bitcoin.
Technically, MARA just broke above double top resistance dating back to late May 2022. Now, from a current price of $11.48, we could see a potential bearish gap refill around $16 a share. If Bitcoin can continue to recover, MARA could even retest $30 at some point.
Granted, there are some red flags…
Not only is MARA at its upper Bollinger Band, it’s also over-extended on Williams’ %R, Fast Stochastics, and on Relative Strength. So, there is some concern. However, if Bitcoin can continue to push higher, MARA is sure to follow.
Changpeng Zhao, the CEO of Binance believes Bitcoin could rally to $70,000 in “a few months or years,” he said, as quoted by The Guardian.
Even the CEO of MicroStrategy, Michael Saylor has been buying weakness in Bitcoin, too.
Fundamentally, there’s a lot to like about MARA, as well.
In the second quarter of 2022, the company produced 707 self-mined Bitcoin, an 8% increase year over year from 654 bitcoin mined in Q2 2021. Year-to-date Marathon Digital produced 1,966 Bitcoin, a 132% increase year over year. In addition, the total number of miners installed and awaiting energization at Texas facilities increased to 29,640 miners.
Marathon Digital also just secured a five-year deal with Applied Blockchain, which builds and operates data centers throughout America.
With that, Marathon “secured approximately 254 megawatts of new hosting arrangements for its Bitcoin mining operations, with an option to increase to 324 megawatts, from a variety of
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