Why This Bitcoin, Ethereum Mining Stock Is Rallying Monday

Riot Blockchain Inc. RIOT shares were trading higher Monday, with the cryptocurrency mining stock likely moving higher alongside Bitcoin BTC/USD and Ethereum ETH/USD.

Riot Blockchain was up 8.17% at $27.94 Monday afternoon. 

Riot Blockchain Daily Chart Analysis

• The stock looks to have recently bounced off of the higher low trendline and is heading higher in what technical traders call a pennant pattern.
• The $40 price level is an area where the stock has struggled to cross above in the past. The higher low trendline has been holding as support for a time and may continue to do so in the future. The higher low trendline is slowly working its way up to the resistance level.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue) Tuesday, indicating the sentiment in the stock is likely bearish.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) has been climbing the past couple of days and now sits at 49. This shows the stock has seen an increase of buyers in the past few days and buying pressure now almost equals the selling pressure.

What’s Next For Riot Blockchain?

After seeing a bounce off support, bullish traders are looking to see the stock begin to head toward resistance. Bulls would then eventually like to see the stock break above resistance and be able to hold it as support. This could be a hint the stock is ready to see another strong bullish push.

Bears want to see the stock fall below the higher low trendline and start to hold it as resistance. If this line held as resistance, it could signal the stock is ready to see a strong bearish push in the future. Bears then want to see the stock form lower highs.