Breakout Coming in Riot Blockchain?
Bitcoin miner Riot Blockchain hit a seven-month high in mid-November. It pulled back sharply and now may be attempting a breakout.
The first pattern on today’s chart is the price zone around $38. This is the roughly the spot where RIOT peaked in June and August. It’s also served as the top since November 16.
Next, the 200-day simple moving average (SMA) is in the same area. (Because RIOT’s historical volatility is above 100 percent, these levels are looser than we’d normally see.) The confluence of this key SMA and old peaks potentially increases the importance of this zone as resistance.
But will it hold? Notice the inside candle on Friday and a bullish outside bar yesterday. That may trigger some alerts for traders today.
Next, notice how the 8-day exponential moving average (EMA) has remained above the 21-day EMA throughout the recent period of consolidation. That may suggest its short-term bullishness remains in effect – despite Bitcoin’s recent tumble.
Finally, RIOT is down about 50 percent since mid-February – despite Bitcoin being little changed over the same period. If cryptocurrencies continue to stabilize and bounce, that price difference could also potentially revive sentiment toward the stock.
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Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the price zone around $38. This is the roughly the spot where RIOT peaked in June and August. It’s also served as the top since November 16.
Next, the 200-day simple moving average (SMA) is in the same area. (Because RIOT’s historical volatility is above 100 percent, these levels are looser than we’d normally see.) The confluence of this key SMA and old peaks potentially increases the importance of this zone as resistance.
But will it hold? Notice the inside candle on Friday and a bullish outside bar yesterday. That may trigger some alerts for traders today.
Next, notice how the 8-day exponential moving average (EMA) has remained above the 21-day EMA throughout the recent period of consolidation. That may suggest its short-term bullishness remains in effect – despite Bitcoin’s recent tumble.
Finally, RIOT is down about 50 percent since mid-February – despite Bitcoin being little changed over the same period. If cryptocurrencies continue to stabilize and bounce, that price difference could also potentially revive sentiment toward the stock.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.