Marathon Digital holdings Inc (NASDAQ:MARA) and Riot Blockchain Inc (NASDAQ:RIOT) were both trading slightly higher in the premarket on Wednesday despite the Nasdaq and the S&P 500 opening lower. The two cryptocurrency miners have so far failed to reverse into uptrends despite Bitcoin (CRYPTO: BTC) making new highs, but that may be set to change.
Marathon Digital and Riot reported outstanding September production numbers, with Marathon producing 340.6 newly minted Bitcoins and Riot a total of 406 for the month. The two miners newly minted Bitcoin has already gained substantial value and on Tuesday looked set to bust through a resistance level at $55,400.
The Marathon Chart: On Tuesday Marathon broke up bullishly from a descending channel that had been holding the stock down since making a Sept. 3 high of $45.20. Within the channel, Marathon made consistent lower highs and lower lows but when the stock made a high above the Oct. 1 price of $34.27 the downtrend was negated.
Marathon printed a big bullish Marubozu candlestick on Tuesday, which indicates higher prices may be in the cards for Wednesday. The next goal for the bulls will be to pop Marathon up over the Sept. 23 high of $37.72, although consolidation on lower time frames may be needed either below or just above the level.
The stock is trading above both the eight-day and 21-day exponential moving averages (EMAs), but the eight-day EMA is trending slightly below the 21-day. If Marathon can continue to hold above the $37 level the eight-day EMA will cross above the 21-day, which would be bullish. Marathon is trading above the 200-day simple moving average (SMA) which indicates overall sentiment remains bullish.
- Bulls want to see sustained big bullish volume come in and push Marathon up over the Sept. 23 high and toward a higher resistance level at the $41.19 mark. If the stock can regain the level as support, it has room to move up toward $45.20, although consolidation will be needed along the way.
- Bears want to see big bearish volume come in and drop Marathon back down below a support level at $37.10. If the stock can’t hold the level as support, it could fall toward $33.77.
The Riot Chart: Like Marathon, Riot has been trading in a descending channel since Sept. 8, making consistent lower highs and lower lows. On Tuesday the stock attempted to break up bullishly from the pattern but closed the day in line with the upper descending trendline.
Riot’s stock printed a small bullish Marubozu candlestick on Tuesday, which like on Marathon’s chart indicates higher prices in the future. Riot will need to pop up over the Oct. 1 high of $27.46 to buck the downtrend and give bulls confidence going forward.
Riot is trading below the eight-day and 21-day exponential moving averages with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The stock is also trading well below the 200-day SMA, which indicates overall sentiment is bearish.
- Bulls want to see big bullish volume come in and break Riot’s stock up through the upper trendline of the channel and over resistance near the $27.50 mark. If the stock can regain the level as support, it has room to move up toward $29.73.
- Bears want to see Riot continue to reject the upper trendline and for big bearish volume to drop the stock back down toward the lower trendline, which would confirm the downtrend is still intact. Riot has support below at $23.93 and $20.68.