Crypto-related stocks dropped on Friday, August 19, during premarket trading after $70 billion left the cryptocurrency markets in just one day.
It appears that the largest cryptocurrency Bitcoin (BTC) is losing its bullish momentum seen over the past few days, as it now trades at $21,568 at the time of writing.
In particular, Marathon Digital (NASDAQ: MARA), Riot Blockchain (NASDAQ: RIOT), crypto exchange Coinbase (NASDAQ: COIN), and MicroStrategy (NASDAQ: MSTR) have all seen their stocks drop in premarket
Mara had the largest losses premarket falling as much as 12.06% as the mining firm depends heavily on the price of BTC.
Marathon Digital is a crypto mining company, whose revenue comes from mining crypto and selling it on the open market, the firm represents one of the largest crypto miners in the world.
In the last month, MARA has been trading in the $10.08 to $18.88 range, currently, it is close to the lower part of its 52-week range. When comparing the performance of all stocks over the past year, MARA turns out to be only a medium performer in the overall market.
Moreover, the support zone is located from $15.44 to $15.58, with the resistance line at $17.02.
TipRanks analysts have a ‘moderate buy’ rating consensus, seeing the average price in the next 12 months reaching $20.14, 29.19% higher than the current trading price of $15.59.
Riot took second place with a 10.97% drop, as the firm similarly to MARA depends heavily on cryptocurrency prices, as on of the largest crypto miners in the stock market.
Riot blockchain, much like Marathon is a crypto mining company that gets its profit from mining, selling, and holding crypto assets.
The short-term trend is positive, while the long-term trend is still negative, with RIOT being part of the Software industry with other 367 stocks, where it performed better than 41% of them. Over the past month, the shares traded between $6.02 and $10.52.
Further, technical analysis shows the support line at $8.02 and the resistance line at $9.20.
Analysts on Wall Street rate the shares a ‘strong buy,’ seeing the average 12-month price reaching $14.83, 79.11% higher than the current trading price of $8.28, with no hold or sell ratings.
Meanwhile, Coinbase shares fell 8% in premarket as the crypto exchange saw crypto assets liquidated across the board.
Coinbase is a cryptocurrency exchange platform, one of the largest in the world, whose profit is closely tied to the crypto markets and users investing more money into digital currencies.
In the last month, COIN has been trading in a wide range between $52.63 and $116.30, with 82% of all other stocks performing better in the past year than COIN. The shares are now in the lower part of their 52-week range, with the resistance line at $86.98 and a support line at $83.46.
Analysts on Wall Street rate the shares a ‘moderate buy’, predicting that in the next 12 months, the average price the stock could reach is $101.18, 21.22% higher than the current trading price of $83.47.
MSTR shares fell 9.4% in premarket as they invested heavily into BTC and the value of the stock is often closely tied to the performance of BTC.
MicroStrategy provides business intelligence, mobile software, and cloud-based services, but over time they have heavily invested into BTC believing in the future of crypto in general and BTC in particular.
MSTR is one of the better-performing stocks in the Software industry, it outperforms 80% of 367 stocks in the same industry. In the last month, MSTR has been trading in the $235.68 to $361.97 range, with the support line at $324.37 and the resistance line at $342.22.
Moreover, analysts rate the shares a ‘moderate buy’, with the next 12 months’ average price prediction at $500.67, 54.35% higher than the current trading price of $323.38, with only 1 analyst having a sell rating.
Since July 17, both the broader equity market and the crypto markets had seen bullish momentum.
The corrective nature of the premarket session is now also spread across the wider stock market and the crypto market, possibly pointing to still an increased correlation.
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Source: https://finbold.com/crypto-stocks-drop-in-premarket-trading-as-bitcoin-falls-below-22000/