Bitcoin After $100K: How MARA, MicroStrategy, and Coinbase Stocks Might Close 2024

Key Takeaways

• Bitcoin reached and topped the $100,000 milestone, driven by historical patterns and Trump’s victory in the U.S.
• Crypto-related stocks benefited from the notable surge in BTC.
• While MicroStrategy’s recent earnings have been negative, its Bitcoin investments offer potential upside.

As Bitcoin (BTC) inched above to its highly anticipated $100,000 milestone, investors are grappling with a crucial decision: Hold or sell?

Bitcoin Tops $100,000

After Bitcoin surpassed the $100,000 milestone, investors faced a dilemma: Take profits or hold on for potentially higher gains?

Traders are eyeing the next quarter as a crucial period, driven by historical patterns and Bitcoin’s four-year cycles.

This timeline aligns with previous peaks linked to Bitcoin’s halving events, suggesting a significant move may be on the horizon.

Two main strategies dominate the current analysis.

The first focuses on price action, using support, resistance and chart patterns to predict movements. The second employs Fibonacci retracement levels, pointing to possible targets like $125,000, $154,000 and up to $194,000.

However, Bitcoin’s price has fallen from its all-time high of $103,647 on Dec. 3. Despite ongoing optimism, the cryptocurrency is forming a bearish engulfing candlestick, signaling potential for further downside.

Since August, Bitcoin has followed a parabolic ascending support trend line and reached its peak after breaking out from a short-term parallel channel. However, technical indicators such as the RSI and MACD show signs of weakness, with the RSI showing a bearish divergence and the MACD producing a bearish cross.

While these indicators remain above bullish thresholds, they suggest that the current drop may be short-term rather than a longer-term correction.

In the short term, Bitcoin’s price fell below the $99,300 support level, signaling a potential further decline to $96,700, with the possibility of dropping to the parabolic support around $92,500.

Despite these bearish signals, wave analysis shows a likely upward move toward $113,700 to $114,400 before a significant correction occurs.

Even in a more bearish scenario, should Bitcoin fall to $92,500, the overall trend suggests that the price will likely rise toward a new all-time high before entering a deeper correction.

MicroStrategy To Rise Further?

As Bitcoin reached $100,000, MicroStrategy’s stock is expected to benefit from this surge, according to Wall Street analysts,  who have issued 12-month price targets for MicroStrategy over the past three months.

The average target is $529.57, with projections ranging from a high of $650 to a low of $312. This average target reflects a potential jump of 55% from the current price of $341.05.

Despite the positive outlook driven by Bitcoin’s momentum, MicroStrategy’s loss estimates for the next quarter are projected at $0.13 per share, with a range between $0.16 and $0.10. This follows a loss per share of $1.72 in the previous quarter.

MicroStrategy has only exceeded its EPS estimates by 25%, over the past year, compared to the broader industry, which has done so 66.89% of the time. Overall, MSTR has underperformed relative to its industry peers, over the last year.

MSTR stock  has already increased this year, jumping by 440% since Jan. 1.

MARA Needs To Offset Q3 Disappointment

According to analysts , the average target is $27.80, with estimates ranging from a high of $42 to a low of $23. This average target indicates a potential 44% increase from the current price of $19.30.

MARA is looking to overcome disappointing third-quarter results . The company reported $131.6 million in revenue, below the consensus estimate of $151.67 million. Despite this shortfall, revenue still grew by 35% year over year.

The company posted an adjusted loss of $0.34 per share, missing analysts’ expectations of a $0.26 loss per share.

On a positive note, Marathon mined 2,070 Bitcoin during the quarter and acquired an additional 6,210. This was primarily funded through a $300 million convertible note offering.

By the end of the quarter, the company held 26,747 Bitcoins and had $1.9 billion in unrestricted cash, cash equivalents and Bitcoin as of Sept. 30.

MARA stock  in New York dropped following third-quarter results and has been down by 18% since the beginning of the year. A prolonged surge in Bitcoin—and, consequently, in investors’ sentiment—may boost the stock recovery.

Coinbase May Hit $420

Analysts on Wall Street  believe the average target for Coinbase stock is $305.65, with estimates ranging from a high of $420 to a low of $185. The average value suggests a potential upside of 11% from the current price of $274.41.

For the next quarter, Coinbase’s earnings per share are projected to be $0.57, with forecasts ranging from $0.10 to $1.43. In the previous quarter, the company reported an EPS of $0.28.

Over the past year, Coinbase exceeded its EPS estimates by 50%, whereas its broader industry did so 63.16% of the time, indicating underperformance relative to its peers.

Adding to investor concerns, several major Coinbase insiders, including CEO Brian Armstrong, plan to sell up to $900 million of the company’s stock, over the next year.

This announcement comes on the heels of a disappointing third-quarter earnings report, raising fears of potential further declines in the company’s performance.

Coinbase shares  have increased by over 58% this year, reaching $274.41 per share, at the time of writing.