BITFARMS LTD (BITF) has, like the cryptocurrency market in general, experienced a bear market in recent years. However, with the halving approaching, things are looking brighter for Bitfarms.
From May 2022 to December 2023, the stock has formed an inverse head and shoulders pattern, suggesting that buyers have the upper hand while sellers have lost momentum. This is evident in the October 2023 chart, where sellers failed to establish a new bottom. Instead, buyers took control and broke through the resistance (area of value) on December 8, 2023.
After a pullback, a new opportunity has now arisen. I went long yesterday when the stock formed a hammer candlestick in the area of value. The stop-loss is set below the area of value and the trendline at 8.25%, while the price target is set at the resistance of 78.33% . The risk-to-reward ratio is 9.5.