Bitcoin mining stocks have seen a bullish breakout this week, with Marathon Digital’s share price reaching its highest level since November. MARA shares jumped to a high of $12.75, up by a whopping 319% from its December low. Other Bitcoin mining companies, such as Riot Platform and Hut 8 Mining, have experienced similar surges.
The increase in the value of Bitcoin and other cryptocurrencies is the main cause of the surge in MARA stock. The crypto fear and greed index has moved into the greed area and TradFi (the movement of traditional finance companies into the crypto industry) is also driving Bitcoin prices.
Blackrock, the world’s largest asset manager, has applied for the iShares Bitcoin Trust with the SEC. This would be an ETF tracking the spot Bitcoin price, similar to the Vanguard Gold Trust. Other companies, such as Invesco and WisdomTree, have made similar filings with the SEC.
On top of this, Deutsche Bank has applied for a crypto custody license in Germany and Credit Agricole, a large French bank, has already received its license. MARA’s share price is benefiting from the Bitcoin price surge and could go higher if the cryptocurrency moves above $31,000, invalidating the double-top pattern.
The daily chart shows that the Marathon Digital stock price has been in a slow bullish trend in recent months. The shares have consolidated around $10 in the past few weeks and recently moved above the key resistance point at $12.85. The price is along the upper side of the ascending triangle pattern and has gone above the 25-day and 50-day moving averages. There is a neutral outlook, but the stock may experience a bullish breakout if buyers target the next resistance point at $15. A drop below the support at $10.90 would invalidate the bullish view.
