Here’s why I think you should be watching GBTC and some of the Crypto Stocks into the end of the year – November 3, 2021
GBTC ETHE SI HUT RIOT MARA
This is Scott with your Cart of the Day. I want to take a look at some crypto and crypto stocks. Now, I will be honest with you, I can’t think of a better trade right now, leading into the last part of the year, other than crypto. Now here’s why; we have GBTC ( OTCMKTS: GBTC ) on the screen. And as you can see Bitcoin is in consolidation. It made a new high and now it’s consolidating that move and doing it pretty healthily; I don’t know if healthily is a word but it feels like it should be.
This is a healthy consolidation that we are seeing right here on Bitcoin ( BTC ) and on GBTC ( OTCMKTS: GBTC ). Just a gentle drift back to the key moving averages here. It is finding buyers under the 8-day and around the 21-day. And so I think you should definitely be watching or finding some way to get exposure to crypto as we get into the end of the year.
Ethereum ( OTCMKTS: ETHE ), the Grayscale Ethereum Trust ( OTCMKTS: ETHE ). This is also working really well. It is hitting new highs today and trading pretty orderly. Back in September it made a high, pulled back to the 50-day, came back up. Where did it consolidate? It consolidated right where it found resistance before. So in my opinion, again, this is really healthy price action.
Now, it’s a little extended here, above all of the major moving averages. So if you don’t have a position in this right now, I have got to say you should probably wait for a buyable pullback to support. And that is why I think that GBTC ( OTCMKTS: GBTC ) is kind of a lower-risk entry here because it is really nice and close to the major moving averages.
A lot of crypto stocks are also working really well. We have some members in SI, Silvergate Corp ( NYSE: SI ). It came out of a beautiful downward-sloping trendline and did it on massive volume. And so I am in this personally and we have some members in this as well, and this is working great.
We have Hut 8 ( NASDAQ: HUT ), which is flagging near the highs here, we like that. It made a new high, and again, it is consolidating that high. It is not getting to a high and then flushing to the lows. We don’t like that, we like nice orderly price action, and this is just kind of going sideways. A nice tight inside day on a pretty volatile day in the market, where for a while it looked like the market was, on no, it’s going to roll over, and then all of the sudden it kind of closed near the highs here.
We like this price action here on Hut 8 ( NASDAQ: HUT ). Now I will say that Hut 8 ( NASDAQ: HUT ) does have earnings coming up on November 11th, it says here on the chart. I am not sure if that is correct but it seems like it could be. I heard November 11th and I also heard November 9th. I don’t know how that is going to play out. My suspicion and my thought are, that the market is probably not expecting much in terms of earnings on the crypto miners because a lot of them aren’t selling their crypto. They are just HODLing it and I think Hut 8 ( NASDAQ: HUT ) is one of those HODLers.
Another crypto stock to keep an eye on is Riot Blockchain ( NASDAQ: RIOT ). Riot ( NASDAQ: RIOT ) has kind of been underperforming a lot of the crypto miners and you can see that on the chart because it is under the 200-day moving average. But it did have a nice volume thrust through the 50-day yesterday and a nice follow-through here today. So on Riot ( NASDAQ: RIOT ), although it is extended, for a momentum trade to the upside, I probably want to see a move through $33.00. But again, mind that 200-day moving average right here.
And finally, Marathon Digital Holdings ( NASDAQ: MARA ), making a new high today, doing it on good volume. This one has been really working well because as you can see, it didn’t ever close under the 200-day moving average. Unlike Riot ( NASDAQ: RIOT ), which has kind of been a little bit of a mess, to be honest. But Marathon ( NASDAQ: MARA ) looks good here. It is also making new highs. Again, in my opinion, it is a little extended and so you would want to watch for a pullback.
That is why I think GBTC ( OTCMKTS: GBTC ) is the lower-risk trade here because it is just consolidating nicely around those key moving averages. So keep an eye on GBTC ( OTCMKTS: GBTC ) and I believe that Grayscale ( OTCMKTS: GBTC ) want’s to make this trust an ETF in the future. So not only, potentially, could the discount start coming off of this trust but then it could get a little hype with them already having a pretty good hold on the crypto market in terms of ETFs and their relationship with the SEC.
I think that there is something here with the GBTC ( OTCMKTS: GBTC ) that is worth paying attention to and I just wanted to share that with you.
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