Marathon Digital (MARA) stock price death cross forms when BTC returns
Marathon Digital's (NASDAQ: MARA ) stock price continued to decline this week, as Bitcoin continued its selloff. Shares fell to as low as $7.85 on Thursday as U.S. stocks continued to retreat. It is down more than 60% from its peak in September.
A key driver of Marathon's stock price is Bitcoin's price action. The same goes for other Bitcoin mining companies like Riot Platform and BitDigital ( BTBT ). These stocks jump when BTC is in a higher position and vice versa. This is because these companies mine and sell bitcoins on the open market.
This happens because these companies hold a significant amount of bitcoins on their balance sheets. Therefore, MARA's share price has fallen as Bitcoin has been in a consolidation phase for the past few months. It rose above $28,000 earlier this month and then retreated sharply to $26,000.
The continued selloff of Bitcoin is in the same range as it has been for the past few months, so investors should not worry. However, traders should pay attention to last month's low of $24,800. A volume-backed move below that level indicates that there are still plenty of shorts left in the market.
The next key driver of Marathon Digital's stock price will be the company's earnings scheduled for November 14. It also tracks Bitcoin prices and earnings in other Bitcoin mining stocks.
Meanwhile, MARA stock has formed a death cross pattern, with the 200-day and 50-day moving averages making a debacle cross. The pattern took place on September 28 and is a sign that stocks will continue to fall in the coming weeks.
