Bitcoin mining stocks have dropped sharply from their highest levels this year.

Bitcoin price is about to form a death cross pattern on the daily chart.

The US dollar index is forming a golden cross pattern.

Riot Platforms and Marathon Digital stock price remained under pressure as Bitcoin and other cryptocurrencies retreated. The RIOT shares were trading at $11.13 on Thursday, ~45% below the highest level this year. Similarly, MARA shares retreated to a low of $12.14, ~38% below the YTD high.

Bitcoin mining stocks have been in a downward trend in the past few days as concerns about cryptocurrencies continued. Precisely, they have dropped sharply as Bitcoin has dropped from the year-to-date high of $31,000 to $26,000.

Sadly, the situation could get worse since Bitcoin is about to form a death cross pattern. This pattern happens when an asset’s 200-day and 50-day exponential moving averages (EMA) are about to make a crossover. In most periods, the death cross is usually followed by more downsides.

Notably, the US dollar index (DXY) is also about to form a golden cross pattern, pointing to more upside in the near term. If this happens, it means that the dollar index will rise to over $106. Historically, Bitcoin has an inverse relationship with the US dollar.

The dollar index has jumped as investors predict a more hawkish Federal Reserve in the coming months. That’s because economic data from the US have been better than expected. For example, the services PMI figure rose at a faster pace in August.

Further, as shown below, Bitcoin has formed what looks like a bearish flag pattern. In price action analysis, this pattern is also a bearish one. It is characterized by a long line followed by some consolidation.

Therefore, there is a high possibility that Bitcoin will soon have a bearish breakout. If it happens, the next level to watch will be $20,000. If this happens, mining stocks like Riot Platforms, Marathon Digital, and Argo Blockchain will likely continue falling.

The likely catalyst for Bitcoin price will be a decision by the SEC to provide a greenlight for a spot Bitcoin ETF.

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The post Riot, MARA, Argo Blockchain stocks at risk as BTC forms death cross appeared first on CoinJournal.

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