Bitfarms Stock Dips As Bitcoin Dips: What’s Next? – BITFARMS LTD. CM (BITF)

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On November 15, after the market closed, Bitfarms Ltd (NASDAQ: BITF) reported record third quarter earnings, but the stock was unable to break past the November 10 high of $ 9.36 the next day because Bitcoin (CRYPTO: BTC) has sold over 7%.

Canada’s self-mining Bitcoin company is affected by both the cryptocurrency market and the general markets, which don’t always move in unison and can sometimes tip Bitfarms. Bitfarms tracked the cryptocurrency market on Wednesday, with Bitcoin trading down around 5% as the Nasdaq hit a new all-time high.

See Also: As Bitcoin Falls Below $ 60,000, Here’s What 4 Popular Crypto Analysts Say

The Bitfarms Chart: After hitting a high of $ 9.36, Bitfarms entered a period of sideways consolidation below a descending trendline. Until Wednesday, Bitfarms was maintaining a support level at $ 9.68, which together with the descending trendline created a descending triangle pattern on the daily chart.

On Wednesday, Bitfarms fell lower across the pattern and printed a low, which has now confirmed that the stock is trading in a downtrend with the most recent low printed on November 15 and the 9 level, $ 19. When the stock broke through the level, it was on increasing bullish volume, indicating that the descending triangle has been recognized.

If the stock is unable to quickly regain the lower horizontal line of the triangle, it is possible that Bitfarms will continue to decline, although the stock will eventually rebound to print a lower. Traders wishing to play the rebound can look for a reversal signal such as a doji candlestick or hammer candlestick to print.

Bitfarms is trading below the eight-day Exponential Moving Average (EMA) but above the 21-day EMA with the eight-day EMA trending above the 21-day indicating indecision. However, the stock is trading well above the 50-day simple moving average, indicating that long-term sentiment is bullish.

The bulls want to see a big bullish volume enter Bitfarms to push it back above the $ 7.68 level and then for the bullish momentum to cause the stock to show a higher above 9, $ 19 to reverse the downtrend. The stock has resistance above the $ 10 levels. Bears want to see sustained bearish volume continue to push Bitfarms down until it loses support at the 21-day EMA. Below the level there is support at $ 6.74 and $ 5.49.

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