Bitcoin and the Big Blockchains Update After Steep Run-up

The article posted to the site at the end of May, which looked at Bitcoin and a range of Blockchain stocks, turned out to be prescient, because while they took a few weeks longer to move, when they moved, they really moved, so that with the exception of RIOT Platforms (formerly RIOT Blockchain), we are up about 50% against these stocks in a month.

Starting with Bitcoin itself, we see on the latest 6-month chart below that after the article was posted, it dribbled lower towards our revised uptrend channel boundary before turning around mid-month and surging higher, rising sharply to resistance in the near the mid-April highs where it has stalled with a tight trading range that looks like a bull flag.

In the meantime, Cabin 8 Mining Corp. (HUT:NASDAQ;HUT:TSX)which continues to work on its merger with the US Data Mining Group, was up sharply in the middle of this month so it’s now about 50% higher than where we bought it.

Hive Blockchain has performed very well indeed and has been up sharply over the past few weeks, so we’re up about 50% now from where we bought.

However, it’s starting to look overbought and a little tired after this big run-up, with a toppy-looking doji candle on the chart yesterday, suggesting a period of consolidation or reaction is imminent, although continued strong volume on the forward means that if it responds back, it probably won’t be much.

On this chart for HIVE from the late May article, we can see the correctly identified Cup & Handle base that spawned the strong advance.

We’ll move on, we’ll see Marathon Digital Holdings Inc. (MARA:NASDAQ) also broke strongly higher at the same time, after a tight stalemate that we thought would lead to an upside breakaway.

MARA also deployed a short term toppy candle yesterday, so traders may want to scale back positions here to avoid a possible consolidation/reaction which, again, is unlikely to be severe.

On the map for MARA from the late May article, we can see that it had already broken out of a rather different looking Cup & Handle base in early April and returned to test support at the top of the pattern.

The only one of our small range of Blockchain stocks that has failed to perform so far is Riot Platforms Inc. (RIOT:NASDAQ) (formerly RIOT Blockchain), and while this may be a sign of incipient weakness, it is still well positioned to break out above the nearby resistance level into another upleg, and if it does, this upleg is likely to be large.

RIOT’s relatively poor performance in recent weeks may be due to lingering fallout from a “hit piece” on the company and industry by no less than the New York Times. The company reacted strongly on April 10, calling the attacks baseless and politically motivated, and from what I know about the NYT as it exists today, such an attack could be worn by the victim as a “badge of honor” for as I understand it , truly intelligent and discriminating people no longer take this publication seriously and have not done so for a long time.

Given the immediate outlook for the other Blockchains discussed here, there is a possibility that the stock will react to the support shown on our chart and then resurface, in which case the uptrend boundary should be adjusted.

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The above represents the opinion and analysis of Mr. Maund, based on data available to him at the time of writing. Mr. Maund’s opinion is his own and is not a recommendation or offer to buy or sell securities. Mr. Maund is an independent analyst who does not receive any compensation from any group, individual or company mentioned in his reports. Since trading and investing in financial markets can carry a serious risk of loss, Mr. Maund recommends that you consult with a qualified investment adviser, one licensed by the appropriate regulatory authorities in your jurisdiction, and do your own due diligence and research when making any kind. of a transaction with financial consequences. While a qualified and experienced stock market analyst, Clive Maund is not a registered securities advisor. Therefore, Mr. Maund’s views on the market and stocks can only be interpreted as a solicitation to buy and sell securities when subject to the prior approval and approval of a registered securities advisor operating in accordance with applicable regulations in your country. jurisdiction.