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Popular Bitcoin mining stocks have formed the rare death cross pattern, pointing to more pain ahead.<h2 class="wp-block-heading" id="cleanspark-and-marathon-digital-have-formed-a-death-cross">CleanSpark and Marathon Digital have formed a death cross</h2>Marathon Digital, the largest mining company in the industry, dropped to $13.75 on Sep. 6, its lowest swing since December of last year. It has fallen by 60% from its highest point this year, erasing over $4 billion in value.Similarly, CleanSpark shares crashed to $8.39, the lowest point since February, and are 66% below their highest level this year. Its market cap dropped from $5 billion in March to $2 billion.Other Bitcoin (<a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) mining stocks, such as Riot Platforms, Core Scientific, Cipher Mining, and Argo Blockchain, have also continued to fall.Most notably, Marathon Digital and CleanSpark have formed a death cross pattern, where the 200-day and 50-day moving averages have crossed each other. In most periods, this pattern leads to more downside.<figure class="wp-block-image size-full"><img width="3574" height="1982" src="https://crypto.news/app/uploads/2024/09/MARA-stock.png" alt="Marathon Digital" class="wp-image-14296527"><figcaption class="wp-element-caption"> Marathon Digital stock | Source: <a href="https://www.tradingview.com/symbols/NASDAQ-MARA/" rel="noopener noreferrer nofollow">TradingView</a></figcaption></figure>A notable example of this is Riot Platforms, which formed a death cross on April 9. Since then, the stock has dropped by 40% and is hovering at its lowest point since March 2023, making it one of the worst-performing mining stocks this year.You might also like: <a href="https://crypto.news/marathon-digital-buys-249m-in-bitcoin-after-raising-300m-from-convertible-notes/" rel="noopener noreferrer nofollow"> Marathon Digital buys $249m in Bitcoin after raising $300m from convertible notes </a><h2 class="wp-block-heading" id="bitcoin-is-also-nearing-a-death-cross">Bitcoin is also nearing a death cross</h2>These mining stocks are crashing due to a combination of two factors: low Bitcoin prices and weak production.Bitcoin dropped below $55,000, reaching its lowest point since Aug. 7. It has fallen by 25% from its highest point this year and by 15% from its August high.Bitcoin’s sell-off may continue as it has formed a series of lower lows and lower highs. It is also close to forming a death cross, indicating that bears have taken control. A drop below last month’s low of $49,000 could signal further downside.<figure class="wp-block-image size-full"><img width="3574" height="1982" src="https://crypto.news/app/uploads/2024/09/Bitcoin-Price-2.png" alt="CleanSpark and MARA stocks form rare pattern as BTC hits 54k - 28" class="wp-image-14296526"><figcaption class="wp-element-caption"> Bitcoin price chart | Source: <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE" rel="noopener noreferrer nofollow">TradingView</a></figcaption></figure>Bitcoin mining companies are also producing fewer coins than they did in August because of the halving event. Marathon Digital <a href="https://ir.mara.com/investors/news-events/press-releases/detail/1369/mara-announces-bitcoin-production-and-mining-operation-updates-for-august-2024" rel="noopener noreferrer nofollow">produced</a> 673 coins in August, down from 692 in July and 850 in April.Similarly, CleanSpark produced 478 coins in August after <a href="https://investors.cleanspark.com/news/news-details/2024/CleanSpark-Releases-April-2024-Bitcoin-Mining-Update/default.aspx" rel="noopener noreferrer nofollow">producing</a> 721 in April while Riot Platforms <a href="https://www.riotplatforms.com/riot-announces-august-2024-production-and-operations-updates/" rel="noopener noreferrer nofollow">mined 322</a> coins in August from the previous month. Other mining companies have seen a similar drop in production.Therefore, a combination of lower Bitcoin prices and weak production suggests that their revenue will continue to decline, while the mark-to-market value of their holdings will also drop. Marathon Digital, Riot Platforms, and CleanSpark hold 25,000, 9,334, and 7,052 coins on their balance sheets.You might also like: <a href="https://crypto.news/riot-platforms-warns-bitfarms-against-moves-to-solidify-control/" rel="noopener noreferrer nofollow"> Riot Platforms warns Bitfarms against moves to solidify control </a>

CleanSpark and MARA stocks form rare pattern as BTC hits 54k

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