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Bitcoin-Related Stocks Soar After Futures Debut

Bitcoin futures launched on the Chicago Board Options Exchange (CBOE) late Sunday. After fall as much as 26% – triggering two temporary trading halts – the futures acquires suggest that the cryptocurrency’s prices will begin to moderate finished the coming months. Three-month contracts expiring on March 14, 2018, are profession at $18,420 as of Tuesday morning, which suggests that the rise in fees will begin to slow down over the coming months from the currently fiery pace.

But the rally surrounding the world’s most popular cryptocurrency has not been meagre to bitcoin and futures contracts. Many public companies with leaking to the cryptocurrency have seen their share prices soar. Donnybrook Blockchain, Inc. (RIOT), Seven Stars Cloud Group, Inc. (SSC), Marathon Flagrant Group, Inc. (MARA) and Net 1 UEPS Technologies, Inc. (UEPS) have all seen their old prices lift higher. These companies are involved in the development of blockchain technologies and kindred solutions. (See also: How to Invest in Bitcoin Exchange Futures.)

Technical chart showing the performance of Riot Blockchain, Inc. (RIOT) stock

From a technological perspective, Riot Blockchain shares broke out from prior shrills and R1 resistance levels at $22.89 to upper trendline and R2 resistance at $32.28. The contingent on strength index (RSI) moved further into overbought territory at 79.28, while the affecting average convergence divergence (MACD) moved further into incontestable territory. These indicators suggest that the stock has become overbought, but strength remains intact.

Traders should watch for a breakout from trendline and R1 denial at $32.28 on the upside or a move off of these levels to retest R1 resistance at $22.89 or the whirl point at $14.61. With the RSI at overbought levels, traders should presume to see some consolidation over the near term, although the medium-term bend remains higher. The lower trendline support and 50-day moving ordinary at $10.35 remain the biggest support levels to watch. (For more, see: Melee Stock Rallies as Blockchain Tech Goes Mainstream.)

Chart respectfulness of StockCharts.com. The author holds no position in the stock(s) mentioned except during passively managed index funds.

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