- Marathon Digital shares retreated on Thursday as BTC plunged.
- The SEC decided to delay the Bitcoin ETF by key companies like Invesco and Blackrock.
- Ethereum price has formed a death cross pattern on the daily chart.
Marathon Digital (MARA) stock price suffered a harsh reversal after the SEC decided to delay ETF applications by the likes of Blackrock, VanEck, and BitWise. The shares plunged to a low of $12.60 on Friday, lower than this week’s high of $13.74.
Bitcoin price slumps
Marathon Digital share price surged on Wednesday after the Grayscale verdict in the United States. This rally, together with that of of other miners like Argo Blockchain, Riot Platforms, and Cipher Mining, happened as BTC price surged.
Bitcoin price soared from $26,000 and reached a high of $28,000. Now, Bitcoin has recoiled after the decision by the SEC to delay the verdict on ETF proposals by companies like Blackrock, VanEck, and Invesco. The delay was in line with my prediction earlier this week.
Marathon Digital stock price tends to move in the same direction as Bitcoin. Its moves are always much stronger than BTC. For example, it has risen by more than 200% this year while Bitcoin is up by less than 70%.
Still, following the Grayscale verdict, most analysts believe that the SEC will ultimately give the green light to these other funds. The only challenge is that the SEC’s decision could take a long period.
The next key catalyst for the Marathon Digital stock price will be the upcoming US non-farm payrolls scheduled for Friday. Economists expect these numbers to show that the economy added 170k jobs while the unemployment rate remained at 3.5%. The key data to watch in this report will be on wages.
Wages are important part for the economy. Monetary theory states that a low unemployment rate leads to higher wage growth and inflation. Therefore, the Fed needs wages to move downward gradually. A stronger NFP report will push MARA downwards.
Another bearish catalyst for the stock is that Ethereum price has formed a death cross pointing to more downside.
MARA stock price forecast
The daily chart shows that the Marathon Digital share price rose sharply on Wednesday. It then retreated after the decision by the SEC to delay the key ETF applications. The coin has moved to the important support level at $12.74, the highest level on April 18.
MARA stock has moved slightly below the 25-period and 50-period moving averages. Therefore, the shares will likely continue falling as sellers target the key support at $10, which is along the ascending trendline.
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