Some of 2021’s biggest losers could be 2022’s biggest winners.
Look at cryptocurrency mining stocks, Marathon Digital Holdings (MARA), for example.
At the moment, the stock is sitting at triple bottom support, and is oversold on RSI, MACD and Williams’ %R. In fact, the last few times these indicators were this oversold, the stock bounced back beautifully. We saw it happen in May 2021, July 2021, September 2021, and could potentially see it happen again, near-term.
While Bitcoin saw some wild swings in 2021, many analysts are still confident the digital currency could rally to $100,000. If that’s the case, mining stocks like MARA could potentially double, if not triple on that news. Helping, we’re still seeing a good deal of cryptocurrency adoption. In addition, “Bill Barhydt, CEO of crypto exchange Abra and a noted bitcoin bull, says Bitcoin could hit $100,000 in 2022. That’s ambitious but hardly insane,” as noted by CNBC.
In short, weakness may be opportunity.