With Bitcoin recently breaking out to new all time highs the Crypto and Blockchain market has reached fever pitch. Riot is a stock that has been consolidating since it peaked from January 8th. One more swing lower may be coming before further upside takes place. lets take a look at what they do:
“Riot Blockchain is focused on supporting the bitcoin ecosystem through proof-of-work mining. We are believers in the bitcoin opportunity and our continued efforts aimed at growing our mining operation demonstrates our commitment to the bitcoin network.
Riot is one of the largest U.S. based publicly-traded bitcoin miners in North America and we are constantly working to improve our efficiency and production.”
Lets dig into the charts!
Riot Blockchain 480m chart:
Medium term term view from the all time low in March 2020 for $MARA is very much the same for $RIOT. There is enough evidence to support an extended wave III in progress. Blue (3) is favoured to have peaked on January 8th at 29.36 with blue (4) now in progress. BTC seems to be forming a wave 4 triangle, so it is possible that RIOT does not move lower for blue (4). Regardless, it is important to know, the right side is higher, we do not like to short this instrument but like to buy pullbacks in 3, 7 or 11 swing to extremes.
In Conclusion, blue (4) may still be in progress, but depending on Bitcoin, a triangle may be in progress. Regardless we do not like to trade the sideways zones but like to trade extreme areas.