[ad_1]
Bitcoin mining stocks have dropped sharply from their highest levels this year.
Bitcoin price is about to form a death cross pattern on the daily chart.
The US dollar index is forming a golden cross pattern.
Riot Platforms and Marathon Digital stock price remained under pressure as Bitcoin and other cryptocurrencies retreated. The RIOT shares were trading at $11.13 on Thursday, ~45% below the highest level this year. Similarly, MARA shares retreated to a low of $12.14, ~38% below the YTD high.
Bitcoin mining stocks have been in a downward trend in the past few days as concerns about cryptocurrencies continued. Precisely, they have dropped sharply as Bitcoin has dropped from the year-to-date high of $31,000 to $26,000.
Sadly, the situation could get worse since Bitcoin is about to form a death cross pattern. This pattern happens when an asset’s 200-day and 50-day exponential moving averages (EMA) are about to make a crossover. In most periods, the death cross is usually followed by more downsides.
Notably, the US dollar index (DXY) is also about to form a golden cross pattern, pointing to more upside in the near term. If this happens, it means that the dollar index will rise to over $106. Historically, Bitcoin has an inverse relationship with the US dollar.
The dollar index has jumped as investors predict a more hawkish Federal Reserve in the coming months. That’s because economic data from the US have been better than expected. For example, the services PMI figure rose at a faster pace in August.
Further, as shown below, Bitcoin has formed what looks like a bearish flag pattern. In price action analysis, this pattern is also a bearish one. It is characterized by a long line followed by some consolidation.
Therefore, there is a high possibility that Bitcoin will soon have a bearish breakout. If it happens, the next level to watch will be $20,000. If this happens, mining stocks like Riot Platforms, Marathon Digital, and Argo Blockchain will likely continue falling.
The likely catalyst for Bitcoin price will be a decision by the SEC to provide a greenlight for a spot Bitcoin ETF.
How to buy Bitcoin
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Public
Public is an investing platform that allows you to invest stocks, ETFs, crypto, and alternative assets like fine art and collectibles—all in one place.
[ad_2]
Source link
