- Marathon Digital share price crossed the important resistance at $19.68.
- The company is benefiting from the elevated Bitcoin prices.
- The outlook for the stock is extremely bullish after the Fed decision.
Marathon Digital (MARA) stock price surged and crossed an important resistance level on Monday as Bitcoin remained above $42,000. The shares jumped to a high of $20.08, crossing the previous YTD high of $19.83. It has soared by more than 540% from its lowest point this year, giving it a market cap of over $4.3 billion.
Bitcoin holds above $40k
The main reason why MARA and other Bitcoin mining stocks like Riot Platforms, Hut 8 Mining, and Cipher Mining have jumped is that BTC price has jumped sharply in the past few months.
Bitcoin has risen from below $20,000 in January to over $40,000 and analysts believe that the coin has more upside in the coming months. The main catalysts to watch will be the approval of a spot Bitcoin ETF, lower interest rates, and the upcoming halving event.
In its monetary policy decision, the Fed decided to leave rates unchanged between 5.25% and 5.50%. It also pointed that the bank would start cutting interest rates in 2024 as inflation continues retreating.
The most recent data showed that the headline Consumer Price Index (CPI) retreated from 3.2% in October to 3.1% in November. With gasoline prices falling, there is a likelihood that prices will continue moving lower in the coming months.
Marathon Digital and Bitcoin tend to do well when the Fed is cutting rates. MARA’s stock price reached an all-time high in 2021 when Bitcoin surged to over $67,000. The same is true with other mining stocks.
The most recent results showed that Marathon Digital’s total net income rose to $64.1 million as its revenue reached $97.8 million. Its average daily Bitcoin production rose to 38, which is higher than 7 in the same period in 2022. Revenue rose because of more production and higher prices.
Marathon Digital has over $102 million in cash and over 13,700 Bitcoins, which are valued at over $589 million. This valuation will continue rising if Bitcoin maintains its bullish momentum.
MARA stock price forecast
The daily chart shows that the Marathon Digital share price continued its comeback this week. As it rose, the token rose above the key resistance point at $19.83, the highest point on July 13th and the previous YTD high. MARA is also nearing the 23.6% Fibonacci Retracement level.
The 50-day and 25-day Exponential Moving Averages (EMA) while the MACD and the Relative Strength Index (RSI) have continued soaring. The RSI has moved above the overbought level.
Therefore, the outlook for the shares is bullish, with the next point to watch being the 50% retracement point at $43.3, which is about 120% above the current level.
