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Deporre: Bitcoin Miners Drawing Fresh Interest

Ahead of the first bitcoin ETF, 'Rev Shark' saw lots of intensity in the market.

Deporre: Bitcoin Miners Drawing Fresh Interest

Ahead of Tuesday’s launch of a bitcoin ETF, shares of bitcoin miners were drawing fresh interest, Real Money’s James ‘Rev Shark’ Deporre noted.

On Friday, as the market looked to build momentum, Deporre noted “pockets of very hot momentum.”

In particular, “I see only about a dozen names that are up 10%,” he wrote. “I suspect this is due to some of the hot money rotating into cryptocurrency plays.” Deporre noted the action came ahead of the SEC’s approval of the bitcoin ETF in “names like Cipher Mining  CIFR, Marathon Digital   (MARA) - Get MARATHON DIGITAL HOLDINGS INC Report, and Hut 8 Mining  (HUT) - Get HUT 8 MINING CORP. Report.”

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Deporre called the relatively narrow pockets of hot money a part of “textbook bottoming action,” adding “we now have a much more bullish technical picture than we had” earlier in the week.

Rev Shark said he was continuing to hold very high levels of cash and he’s looking to put it to work. “I'm staying selective,” he notes. “I plan on increasing my incremental buying, but I'm not going to do any major chasing.”

Traders historically don’t like abrupt moves - even higher ones - higher to be difficult to trade as they’re usually not well-positioned and are forced to chase entry points just as the market is ready to rest.

“It can be quite hard to keep pace with the indices when you have been taking a defensive stance for a month, but strong markets tend to persist, and the opportunities will be easier to spot,” Deporre said.

Going forward, Deporre expects “better support” against market pullbacks.

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