Blog

Marathon Digital (NASDAQ: MARA) stock price continued plunging this week as Bitcoin resumed its sell-off. The shares crashed to a low of $7.85 on Thursday even as American shares continued retreating. It has dropped by greater than 60% from the best stage in September.

The key driver for Marathon stock price is Bitcoin’s price motion. The similar applies for different Bitcoin mining firms like Riot Platform and BitDigital (BTBT). These shares bounce when BTC is in an uptrend and vice versa. This occurs as a result of these firms become profitable mining and promoting Bitcoin within the open market. 

It additionally occurs as a result of these corporations maintain substantial Bitcoin of their steadiness sheet. Therefore, MARA stock price has plunged as Bitcoin has remained in a consolidation section prior to now few months. It jumped to above $28,000 earlier this month after which retreated sharply to about $26,000.

The ongoing Bitcoin sell-off mustn’t fear traders since it’s within the vary it has been prior to now few months. Nonetheless, merchants ought to pay an in depth consideration to final month’s low of $24,800. A volume-supported transfer under that stage will sign that there are nonetheless extra shorts left out there. 

The subsequent key catalyst for Marathon Digital stock price would be the firm’s earnings scheduled for November 14th. It may also keep watch over Bitcoin costs and earnings by different Bitcoin mining shares.

Meanwhile, MARA stock has fashioned a death cross sample, which forms when the 200-day and 50-day transferring averages make a bearish crossover. The sample occurred on September twenty eighth and is an indication that the shares will proceed falling within the coming weeks.