The pullback in Bitcoin may be an attractive opportunity.
For one, there’s still a good deal of institutional and retail interest.
In fact, according to CoinTelegraph, “Crypto investment products, which include exchange-traded funds (ETFs), saw weekly inflows totaling $154 million for the week ending Nov. 20, according to CoinShares‘ latest fund flows report. Like in previous weeks, Bitcoin investment products attracted most of the inflows at $114.4 million.”
Two, Bitcoin is technically oversold on RSI, MACD, and Williams’ %R.
Not only did Bitcoin catch support dating back to early October, but RSI, MACD, and Williams’ %R have become over-extended in oversold territory. If you also pull up a two-year chart of Bitcoin, you can see that when these three indicators align in oversold or overbought territory, the digital currency tends to pivot shortly after.
That’s also good news for mining stocks, such as Marathon Digital (MARA), which dipped to double bottom support at its 50-day moving average. With MARA, Williams’ %R has been a great indicator to watch for excessively oversold conditions. In fact, if you pull up a one-year chart of MARA with just W%R, you can see just how accurate W%R is in calling the bottom.
Marathon Revenue Up 76% Year over Year
Even better, MARA is growing well.
In its most recent quarter, the company said it increased total revenue to $51.7 million, a 76% increase from $29.3 million in the second quarter of 2021 and a 6,091% increase year-over-year from $835,000 in the third quarter of 2020. It also produced 1,252 self-mined bitcoins in the third quarter of 2021, a 91% increase from 654 bitcoins in the second quarter of 2021; as of September 30, 2021, produced 2,098 self-mined bitcoins in 2021.
Analysts at B. Riley like the MARA stock, too. Just days ago, analyst Lucas Pipes raised the firm’s price target to $92 from $87, with a buy rating.
Weakness in BTC and MARA may be a great buy opportunity.
