The Pullback in Bitcoin May be a Buy Opportunity


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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.


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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.

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