Several cryptocurrency mining stocks have plummeted due to the recent decline in crypto prices. Therefore, with a rebound expected in 2022, now could be the time to target crypto mining companies.
Bit Digital Inc. (NASDAQ:BTBT) is a bitcoin mining company that uses its facilities to generate and accumulate bitcoins sold at an appropriate time for fiat currencies.
The stock has plummeted, peaking in August to trade at an attractive price-earnings ratio of 8.96, making it a compelling option for bargain hunters.
Technically, Bit Digital shares seem to be trading within a descending channel formation in the intraday chart. However, it has recently bounced off the trendline support to halt the decline.
Therefore, with shares trading close to the oversold conditions of the 14-day RSI, investors could target rebound profits at about $8.21, or higher at $9.69. On the other hand, $5.77 and $4.26 are crucial support zones.
Hut 8 Mining
Hut 8 Mining Corp (TSE:HUT) is a Canadian bitcoin mining company, which uses advanced equipment to validate transactions on the blockchain.
The company recently said it averaged a mining rate of 8.8 bitcoins per day in November, mining 265 bitcoins during the month.
The stock trades at an exciting forward P/E ratio of 9.74, and analysts expect its EPS to grow by nearly 760% this year before growing by a further 133% next year.
Technically, the stock has recently bounced off the trendline support of a descending channel formation.
Therefore, investors could target channel breakout profits at about $9.30, or higher at $10.23, while $7.47 and $6.44 are crucial support zones.