Bitcoin mining stocks continued their recovery as Bitcoin saw a rise over the weekend. Bitcoin mining stocks are experiencing growth, driven by Bitcoin’s upward momentum.

Bitcoin has increased by over 26% from its lowest point this month as bulls anticipate a potential move to $70,000. Core Scientific (CORZ) stock rose by 2.3% on Monday, while Riot Platforms (RIOT), Marathon Digital (MARA), Iris Energy (IREN), Cipher Mining (CIFR), and CleanSpark (CLSK) jumped by more than 2%.

Bitcoin Mining Stocks on the Rise

The rise in companies like CORZ, RIOT, MARA, IREN, and CLSK is fueled by investor optimism that Bitcoin will continue its recovery this year. A poll on Polymarket revealed that 67% of users expect Bitcoin to hit $70,000 this month, a significant increase from the current $67,000.

One possible catalyst for this rally is political polls indicating that Donald Trump may outperform Kamala Harris in the next election. Bitcoin’s price is likely to benefit from the upcoming Bitcoin event in Nashville, where Donald Trump is scheduled to speak. Additionally, he will be attending a campaign fundraiser, with ticket prices exceeding $800,000.

Impact of Bitcoin Price on Mining Stocks

Bitcoin mining stocks tend to perform well when Bitcoin is in an uptrend, leading to increased revenues and profits. This price action is crucial, especially since many miners produced fewer coins following the halving event in April.

Signs of industry consolidation have also contributed to the rise in these stocks. Riot Platforms made a bid for Bitfarms earlier this year, while Core Scientific rejected a buyout offer from CoreWeave. Recently, Cipher Mining was reported to be considering a sale after receiving bids. More Bitcoin mining companies could attract acquisition offers from firms looking to expand their artificial intelligence (AI) footprint.

Technical Risks and Market Signals

Despite the positive trends, these companies face technical risks as chart patterns provide mixed signals about Bitcoin prices. Veteran prop trader Peter Brandt noted on Saturday that the current formation does not indicate a bullish flag. Instead, he believes Bitcoin is in a downtrend.

“I try to be as honest as possible to Edwards/Magee/Schabacker in pattern labeling. The current congestion in Bitcoin is NOT a flag (it has lasted too long) but appears as a down channel.” – Peter Brandt

However, Bitcoin appears to be forming a falling broadening wedge pattern, which is a bullish sign. Additionally, Bitcoin has moved into the third phase of the three-dives pattern, suggesting more upside potential. The fact that Bitcoin has remained above the 200-day moving average also points to further gains. As noted by Michael Novogratz in June, Bitcoin’s upside will be confirmed if it rises above the year-to-date high of $73,400.

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