Crypto Stocks Post Weekly Losses – MSTR, MARA, RIOT Drop as Bitcoin Fails at $95K

• Riot Platforms (RIOT): Riot declined 4.85%, closing at $10.99. The stock is now hovering just above its 52-week SMA of $10.62, indicating possible weakness. A break below $10.00 could invite further selling.

Fundamental Drivers Behind the Declines

The broader pullback in crypto stocks reflects concerns over Bitcoin’s inability to sustain higher prices into year-end, alongside slowing trading volumes across major exchanges. Investors appear reluctant to chase prices higher without a clear catalyst to drive Bitcoin beyond the $100,000 barrier.

Additionally, MicroStrategy’s latest Bitcoin purchase highlights continued bullish accumulation by institutional players, but near-term headwinds persist. Crypto miners, including Marathon and Riot, face operational challenges as halving looms and energy costs rise, making profitability increasingly sensitive to Bitcoin price volatility.

Critical Technical Levels to Watch

• Bitcoin: Key resistance stands at $95,767 (50-day SMA), while immediate support rests at $92,200. A decisive break below this level risks opening the door to $80,000-$85,000 – a potential accumulation zone for long-term investors. The 52-week SMA at $66,191 represents deeper support if selling intensifies.
• Coinbase (COIN): The $217.00 level (52-week SMA) may act as downside support if selling pressure persists. A bounce off this level could signal a reversal.
• Marathon Digital (MARA): Watch the $18.00-$18.35 zone closely. A break below could lead to tests near $16.00.
• MicroStrategy (MSTR): While current prices are far above the $172.06 SMA, corrections toward the $275-$300 range may attract dip buyers.
• Riot Platforms (RIOT): RIOT’s $10.62 SMA offers short-term support. A sustained move below $10.00 could push the stock toward $9.00 or lower.

Market Outlook

Bitcoin’s inability to decisively reclaim $100,000 suggests the market remains in consolidation mode as 2024 concludes. Crypto stocks like MARA and RIOT may face additional downside if Bitcoin slips below key support, while MicroStrategy’s long-term strategy could buffer against short-term volatility.

A breakout above $96,000 for Bitcoin may reignite bullish sentiment, driving a recovery across crypto-related equities. Conversely, further weakness below $92,200 could extend selling pressure into early 2025, presenting opportunities for long-term accumulation across leading crypto assets and stocks.

More Information in our Economic Calendar.