Hello, and welcome to another updated article. Today, we’re taking a close look at Marathon Holdings, a popular crypto miner. We'll be examining the latest adjustments and updates to the Elliott Wave structure.
Current Market Structure: 4-Hour Chart Analysis
Marathon Holdings is currently in a wave four, similar to Bitcoin. This wave may have already been completed, but there is still a good chance for another test of the main support area on the chart. This potential wave five could form an expanding diagonal pattern, suggesting that the next rally might be substantial.
Understanding Marathon's Volatility
Crypto miners, including Marathon, exhibit high volatility similar to altcoins. Their microstructures can be choppy, making them challenging for heavy trading. It's essential to recognize these assets as suitable for swing trading rather than long-term investments.
Key Levels and Wave Structure
Starting from the 2022 low, which marked the beginning of the bull market, Marathon saw an initial rally (wave 1) followed by a wave two pullback. The key invalidation point for any further bullish upside is around $5.15. Additionally, the B-wave low, which bottomed in September last year, acts as another crucial invalidation point.
Currently, we observe a potential C-wave, which is a five-wave move. We have completed wave 1, wave 2, and wave 3. If this is indeed a wave four, it should ideally hold within the trend channel and above the $10.70 level. Any break below $10.70, though not invalidating the white structure entirely, will make it less reliable. The ultimate invalidation point remains at the B-wave low of around $7.10.
Micro Patterns and Breakout Points
Examining the micro patterns, we see two possible bullish scenarios:
- Wave Four Bottomed: We could be moving up in an ABC structure within wave five. This scenario posits that wave A is a leading diagonal, and the choppy structure could signify a corrective wave B.
- Wave Four Continuing: The choppy structure might indicate we are still within wave four, potentially forming a wave C.
To validate these scenarios, we need to see a break above the high at $22.85. This breakout would invalidate the current wave four count and signal the onset of a C-wave rally. Pay attention to the trend line, which has four touchpoints, as an early breakout signal.
Possible Support and Resistance Levels
If the wave C continues, it should target around $13-$14. Until we see a clear breakout signal, downside pressure remains high. However, the move down isn't aggressive enough to definitively indicate a C-wave decline.
Key Takeaways
- Immediate Support: $10.70 level.
- Breakout Signal: Above $22.85.
- Potential Support for Pullback Trade: $13-$14.
Conclusion
That's the update on Marathon Holdings. Watch for potential upside breakouts in the coming weeks, and keep an eye on the key support and resistance levels mentioned.