Over the weekend I showed you a weekly chart of Bitcoin.
That chart showed how clutch this week would be for the coin as the price held the 50-week moving average and needed to continue to do so.
For today, with Bitcoin holding support, we look at Marathon Digital Holdings Inc. (NASDAQ:MARA).
This is a monthly chart with the 2 moving averages we rely on for denoting business cycles.
The blue line is the 23-month MA or about a 2-year business cycle.
The green line is the 80-month MA or about a 6-8-year business cycle.
Monthly charts are a great way to look at the start of a much bigger trend.
Note that the interview I did with Maggie Lake on September 9 mentions this stock as a buy and talks more about what I am watching in the crypto space.
Incidentally, BITO, the ProShares ETF, has a similar look to MARA.
MARA cleared the 80-month MA in 2021.
In April, the 23-month MA crossed the 80-month MA, which is bullish.
However, as interest rates rose precipitously in 2022, the stock faltered.
In October 2023, MARA cleared back over both MAs.
And now as we have seen throughout 2024, the price holds both the longer and shorter-term business cycle moving averages.
That makes it look ripe for a move higher.
Plus, the risk is quite clear to under the 2024 lows, which we just made this week.
Hence, the question is whether this is the bottom for the year or the start of a much bigger move is higher.
ETF Summary
- (Pivotal means short-term bullish above that level and bearish below)
- S&P 500 (SPY) 5400-support level
- Russell 2000 (IWM) 210 pivotal
- Dow (DIA) 400 support
- Nasdaq (QQQ) 440 support 465 resistance
- Regional banks (KRE) 54 support
- Semiconductors (SMH) 207 the 50-WMA 230 resistance
- Transportation (IYT) Has to hold above 65 clear 67.00
- Biotechnology (IBB) 137 area support 145 pivotal
- Retail (XRT) 73.50 resistance to clear
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Still very much risk on