Following a recent surge that propelled Bitcoin (BTC) to an 18-month high exceeding $44,000, the cryptocurrency market is once again ablaze with bullish momentum.
Beyond the primary digital assets, this rally is notably benefiting crypto-related stocks, particularly those of publicly listed Bitcoin mining firms.
One stock that could particularly capitalize on this uptrend is Riot Blockchain (NASDAQ: RIOT), the largest public crypto mining company.
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Amidst these developments, a popular chartist has boldly declared that crypto mining stocks are poised to “destroy short sellers,” underscoring the optimism surrounding their anticipated upward trajectory in the current market cycle.
Why could RIOT stock surge in price?
In his December 5 analysis post, cycle forecaster and chartist BACH published an interesting chart showcasing several factors that could drive Bitcoin mining stocks, particularly RIOT, to new highs.
Most notably, the analyst pointed out that RIOT’s shares are ever closer to breaking out of a long-term descending trend line from the bull market peak reached in 2021. A successful breakout may lead to a significant price jump, he said.
“Miners are going to destroy short sellers! We’re so close to breaking out of the long-term descending trend line from the cycle peak in 2021! Expect some serious movement upwards once that happens.”
– BACH wrote in his X post.
Additionally, the structure of the Relative Strength Index (RSI), a popular price momentum gauge, “looks similar with somewhat of a cup forming!” Bach wrote.
As a result, this should lead to “incredible overbought conditions on the monthly time frame” like those witnessed in previous bull cycles.
This uptrend is also confirmed by a monthly moving average convergence/divergence (MACD) indicator, as well as a “massive pennant” that is taking form on the chart – which represents another bullish trading pattern.
‘RIOT heading for min. $100’
On account of several factors he analyzed, it is safe to say that BACH is extremely bullish on RIOT’s stock price prospects.
In fact, the chartist is so optimistic that he predicts the current cycle propel crypto miner’s shares to a minimum of $100. That implies a potential upside of 565% from the company’s current share price of $15.14.
The stock capitalized heavily on the ongoing crypto bull run, surging more than 17% over the past week and around 37.5% across the month, propelling it to a 4-month high.
Year-to-date, RIOT skyrocketed a whopping 350%, outshining the S&P 500’s best performers such as Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META).
Another crypto stock that staged similar gains this year is Coinbase (NASDAQ: COIN), which saw its share price triple year-to-date.
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