The article posted on the site toward the end of May looking at Bitcoin and a range of Blockchain stocks turned out to be prescient, for although it took them a couple of weeks longer to get moving, when they did move, they really moved, so that, with the exception of RIOT Platforms (formerly RIOT Blockchain), we are up about 50% on these stocks in a month.
Starting with Bitcoin itself, we see on its latest 6-month chart below that after the article was posted, it dribbled lower toward our revised uptrend channel boundary before turning and taking off strongly higher in the middle of this month, rising sharply to resistance in the vicinity of its mid-April highs where it has stalled out with a tight trading range forming that looks like a bull Flag.
Meanwhile, Hut 8 Mining Corp. (HUT:NASDAQ;HUT:TSX), which is continuing to work on its merger with U.S. Data Mining Group, took off strongly higher in the middle of this month so that it is now up about 50% from where we bought it.
Hive Blockchain has performed very well indeed, rising steeply over the past couple of weeks, so we are now up about 50% from where we bought.
However, it is starting to look overbought and a bit tired here after this big runup, with a toppy-looking doji candle appearing on the chart yesterday, which suggests that a period of consolidation or reaction is imminent, although the persistent strong volume on the advance means that if it does react back, it probably won't be by very much.
On this chart for HIVE from the late May article, we can see the correctly identified Cup & Handle base that spawned the strong advance.
Moving on, we see that Marathon Digital Holdings Inc. (MARA:NASDAQ) also broke strongly higher at the same time, following a tight standoff that we figured would lead to an upside breakout.
MARA also put in a short-term toppy candle yesterday, so traders may want to scale back positions here to sidestep a possible consolidation / reaction that, again, is unlikely to be severe.
On the chart for MARA from the late May article, we can see that it had already broken out of a rather different-looking Cup & Handle base early in April and had returned to test support at the top of the pattern.
The only one of our small range of Blockchain stocks that hasn't performed so far is Riot Platforms Inc. (RIOT:NASDAQ) (formerly RIOT Blockchain), and while this may be a sign of incipient weakness, it is still well positioned to break above the nearby resistance level into another upleg, and if it does this upleg is likely to be big.
RIOT's relatively poor performance in recent weeks may be due to lingering fallout from a "hit piece" on the company and the industry by no less than the New York Times. The company mounted a vigorous response on 10th April, calling the attacks baseless and politically motivated, and from what I know about the NYT as it exists today, such an attack by it may be worn by the victim as a "badge of honor" for as I understand it, truly intelligent and discriminating people no longer take this publication seriously and haven't done for a long time.
Given the immediate outlook for the other Blockchains reviewed here, there is the possibility that the stock will react back to the support shown on our chart and then turn up, in which case the uptrend boundary will require to be adjusted.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
