- Marathon Digital share price jumped above 200-day MA on Wednesday.
- Bitcoin price has remained steadily above the resistance at $30k.
- A golden cross could form in the next few days if BTC rally continues.
Marathon Digital stock price rose above an important level as Bitcoin prices continued rising after the impressive American inflation data. MARA shares jumped to a high of $10.27, the highest point since November 8 of last year. The shares have soared by more than 232% from the lowest point this year.
Bitcoin mining stocks rise
Marathon Digital is a leading company that provides Bitcoin mining services. The American company mines, holds, and sells Bitcoins to individuals and companies. Therefore, like other mining companies, it benefits when the price of cryptocurrencies jump.
MARA stock has rebounded by more than 200 points because of the strong performance of BTC and other cryptocurrencies. Bitcoin jumped above the important resistance of $30,000 on Tuesday, the biggest level since June last year.
It remains above $30,000 after data showed that America’s inflation continued dropping in March, signaling that the Fed will start pivoting soon. The headline consumer price index (CPI) dropped to 0.1% on a month-on-month basis. Economists were expecting the data to show that the CPI dropped to 0.3%.
Inflation dropped to 5.0% from a year earlier. That was the lowest it has been since 2021, signaling that the Fed is making progress in its battle against inflation. Therefore, analysts expect that the Fed will hike by 0.25% in May and then take a strategic pause.
Therefore, Marathon Digital Holdings shares jumped as investors anticipate more profits as Bitcoin price jumps. Some analysts believe that BTC will rise to its all-time high this year if the Fed starts pivoting.
Other companies in the crypto industry did well. As I wrote on Tuesday, Coinbase stock price has continued surging in the past few weeks. Bitcoin mining companies like Argo Blockchain and Riot Platforms have also jumped.
MARA stock price forecast
The daily chart shows that the Marathon Digital share price has been in a strong bullish trend in the past few days. As it rose, it moved above the upper side of the triangle pattern shown in green. Most importantly, it has moved above the 200-day moving average. This is an important step since it signals that bulls are gaining momentum.
It also means that a golden cross is about to happen. This pattern happens when the 200-day and 50-day moving averages make a crossover. Therefore, the outlook for the stock is bullish as long as Bitcoin is able to hold above $30,000. If this happens, the next level to watch will be at $15.77, which is ~51% above the current level. This price is its October high.
