Here are some stocks that are breaking down. Check out $MSTR $MARA $RIOT $IBIT. Not a good look, eh?
This is Dan Fitzpatrick with your Chart of the Day. We are going to look at some Bitcoin stocks.MicroStrategy ( NASDAQ: MSTR ) is in a really, really solid uptrend here on the weekly chart. A nice breakout, there is only one thing wrong with it, and that is that this last bar was on Friday the 29th, what a difference a week or two makes. We gap up but, nonetheless, it’s a higher intra-week high, a higher intra-week low.
That takes us to last Friday, so it’s all good. You’re going to get this kind of move and then this happens, this is the kind of move you don’t want to get. You can be a big fan of crypto, a big fan of Bitcoin, I am. I own, not enough, I own a lot but not as much as I’d like, so this is, actually, good news for me.
Because when the crypto stocks, and MicroStrategy ( NASDAQ: MSTR ), I think they’re MacroStrategy is by Bitcoin. But when MicroStrategy ( NASDAQ: MSTR ) is down like this it’s because Bitcoin is down. The thing is, don’t be sitting here, don’t be a fanboy on this and say, “Oh here’s my buying opportunity.”
No, you can buy this stock, but for crying out loud, this is a bunch of red boxes here. This is a bunch of red sticks that just keep going lower, this is a broken stock right now. It will take a while to regain, but we have been trading this all the way up. Setting stops, taking some partial profits.
Setting stops and then finally, I think this last stop up here was at 614.00, which I believe was just a little bit below this one. And so, this position was closed a while ago. Or I should say, several percent ago, so you have got to use stops on this stuff. So that is MicroStrategy ( NASDAQ: MSTR ).
MARA ( NASDAQ: MARA ), is the same thing. This was a really, really good trade and it was a really, really good stock, but not now, it’s not. I know I will get some comments on YouTube, I don’t get a lot but I will get a few emails and see them in the trading room, like, you don’t understand MARA ( NASDAQ: MARA ). No, I do understand it just fine.
You get this big move like this, this kind of fish hook move on Bollinger Bands. This is a good tell that this move is over on the weekly chart, so this can come a lot lower. A big breakdown here, you don’t want to be long this stock.
Hopefully, you will sit and wait, and you won’t buy it, and you won’t buy it. And then, whether it’s a week or a month or two from now, this stock will have stabilized and it will start going up. And you might say, Dan, you were wrong. Well, I might be in it already. I am not writing off Marathon Digital Holdings ( NASDAQ: MARA ), I’m writing off this chart, that’s a big difference. So no thank you for this chart.
Riot ( NASDAQ: RIOT ), is the same thing, guys. Let’s just say that the bloom has come off the rose. Now, IBIT ( NASDAQ:IBIT ), the Bitcoin Trust is down another 6.23. This should not have been a surprise to you. It is something that I have been talking about. It’s something that Scott has been talking about for a while now, which is, there’s been so much anticipation for Bitcoin ETFs, that like, what’s going to happen? What’s going to happen to these?
It was definitely the minority opinion to think that once the ETFs were released Bitcoin would scream higher because that would be the most anticipated trade in the world. And as typically happens with the most anticipated trade in the world, it never works out. And so this is really no different here.
At the present time, I look at these ETFs, and I will just tell you this, they’re dead to me. If you’re a big fan of Bitcoin, welcome, me too. But these are dead right now. If you are really, really interested in this, Oh, I’ve been waiting for Bitcoin ETFs, wait a little bit longer.
Ultimately, this will stabilize but it’s not going to stabilize next week. It’s not going to stabilize two weeks from now. It’s not going to stabilize next month. It’s going to take a while for all this stuff to work its way through the system. You can watch IBIT ( NASDAQ:IBIT ) here. You can watch Riot ( NASDAQ: RIOT ). You can watch MARA ( NASDAQ: MARA ). You can watch MicroStrategy ( NASDAQ: MSTR ).
All of these are going to be trading in sympathy with each other, and that’s important for you to know. Because if you see one of these things turn around, that’s fine. But then go look at the other charts and see if they’re doing the same thing. And if they are doing the same thing, then that really means something. But if it’s just kind of a one-off, then maybe it’s just a supply and demand issue for that particular stock. There’s a difference between those two dynamics.
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