Technical Analyst, Saxo Bank
Summary: The introduction of Bitcoin ETF’s/ETN’s has sparked a rally in Bitcoin and Ethereum. That rally has lifted Crypto currency related Equities such as Coinbase, Riot Platform, Marathon Digital and Cleanspark.
They are all highly correlated i.e., they move almost in sync.
The Coinbase analysis will be more detailed but I have added the charts with some text for the Crypto mining companies
At the end there are Bitcoin and Ethereum analysis'
Coinbase has bounced from its support at around 161.28 and propelled higher yesterday closing at year high.
But there could be further upside potential for Coinbase.
Coinbase seems to have formed a pattern called “Cup with a Handle” The correction in February is the Handle pattern. The potential price target after a Cup with a Handle pattern is illustrated by the two vertical arrows. You measure from the depth of the Cup and add the distance to the right edge of the Cup. That gives us a potential price target of 273
However, often an asset is not moving the full potential distance. It is often cut short around the 0.618 Fibonacci level in this case at 242.54
However, there is some resistance at around 231.77 - see weekly chart. A daily close above could see Coinbase pushing higher though
Positive sentiment on RSI – the value is above the 60 threshold - both daily and weekly is supporting the bullish picture
A daily Close below 160.65 i.e., below the Cup, will demolish this bullish scenario and a downtrend is likely to be established
Marathon Digital MARA Strong resistance at around 31.05. A close above could fuel a rally higher to around 35.25 i.e. the 1.618 projection of the correction from last week but there is room up to strong resistance at around 40.45 – see weekly chart
A daily close blow 22.67 will demolish the bullish picture
Riot Platform RIOT has retraced 0.786 of last week’s correction at 17.40. A break is in the cards supported by positive RSI sentiment.
A close above 18.24 could fuel another rally to the 1.618 projection at 20.65
There are resistance at 19.12 and 20.65. A close above 20.65 could push RIOT 23.66 level.
A close below 14.30 will demolish the bullish scenario Cleanspark CLSK Bitcoin mining company has reached the 2.00 projection (200%) of the january correction at 20.71. However there is still room up to the strong resistance area at 21.84-23.60
There is RSI divergence on the weekly chart indicating an exhaustion of the bullish trend meaning a correction could soon occur.
However, a daily close above 23.60 could fuel another buying frenzy towards USD 30.
Ethereum ETHUSD is fast approaching strong resistance at around 3,525. A correction could be seen from around that level. A break above is paving the road higher towards previous all-time highs
A break below 2,700 will demolish the bullish scenario
2024: The wasted year
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With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.