- Marathon Digital share price soared above the key resistance level at $12.90.
- The stock could soar by another 40% in the coming weeks to $18.70.
- Bitcoin price is ripe for a bullish breakout ahead of the options expiry.
Marathon Digital stock price rose above an important resistance level this week as Bitcoin remained in a tight range. MARA shares jumped to a weekly high of $14.33, the highest level since October 2022. The shares have jumped by more than 335% from the lowest level this year.
It is not alone as other Bitcoin mining companies held quite well. Riot Platforms stock price held quite well above $10 and is now hovering at about $12. The shares have jumped by over 257% from the lowest level in December. The only laggard has been Argo Blockckchain whose stock price has moved sideways in the past few days.
Bitcoin price could explode soon
Marathon Digital and Riot Platforms stock prices moved sideways this week as investors focus on the prices of Bitcoin. Bitcoin prices remained in a tight range during the week. It remained slightly above the key support at $30,000. In most periods, Bitcoin mining stocks tend to track the performance of BTC.
Therefore, if we can predict the future of Bitcoin prices, then we can forecast where MARA stock will be in the next few months. I believe that Bitcoin is about to bounce back in the coming days. For one, it has already retested its highest level this year. It has also formed a bullish flag pattern, which is usually a bullish sign.
Most importantly, Bitcoin remains comfortably above all moving averages and is about to invalidate the double-top pattern. At the same time, Bitcoin whales are still accumulating the coin. For example, Michael Saylor, the former MicroStrategy, added about 12,000 more Bitcoins this week.
Bitcoin also has some options expiring on Friday, which could see some volatility ahead or after the event. In a note, the founder of Kralow Capital wrote:
“We're currently observing a wedge formation, and if we break to the upside with significant trading volume, it could lead to a potential breakout. The approximate upside target for this potential breakout is $32,000, while the downside target could be around $28,000.”
MARA stock price forecast
The daily chart shows that the Marathon Digital stock price has continued rising in the past few months. This week, the shares managed to move above the important resistance point at $12.90, the previous year-to-date high.
MARA share price has jumped above the 50-day and 100-day exponential moving averages (EMA). Therefore, there is a likelihood that the stock will continue soaring as buyers target the next key resistance point at $18.70, the highest level on August 11th high. This price is about 40% above the current level.
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