Bitcoin futures debuted on the Chicago Board Options Exchange (CBOE) late Sunday. After surging as much as 26% – triggering two temporary trading halts – the futures contracts suggest that the cryptocurrency's prices will begin to moderate over the coming months. Three-month contracts expiring on March 14, 2018, are trading at $18,420 as of Tuesday morning, which suggests that the rise in prices will begin to slow down over the coming months from the currently torrid pace.

But the rally surrounding the world's most popular cryptocurrency has not been limited to bitcoin and futures contracts. Many public companies with exposure to the cryptocurrency have seen their share prices soar. Riot Blockchain, Inc. (RIOT), Seven Stars Cloud Group, Inc. (SSC), Marathon Patent Group, Inc. (MARA) and Net 1 UEPS Technologies, Inc. (UEPS) have all seen their stock prices lift higher. These companies are involved in the development of blockchain technologies and related solutions. (See also: How to Invest in Bitcoin Exchange Futures.)

Technical chart showing the performance of Riot Blockchain, Inc. (RIOT) stock

From a technical perspective, Riot Blockchain shares broke out from prior highs and R1 resistance levels at $22.89 to upper trendline and R2 resistance at $32.28. The relative strength index (RSI) moved further into overbought territory at 79.28, while the moving average convergence divergence (MACD) moved further into positive territory. These indicators suggest that the stock has become overbought, but momentum remains intact.

Traders should watch for a breakout from trendline and R1 resistance at $32.28 on the upside or a move off of these levels to retest R1 resistance at $22.89 or the pivot point at $14.61. With the RSI at overbought levels, traders should expect to see some consolidation over the near term, although the medium-term trend remains higher. The lower trendline support and 50-day moving average at $10.35 remain the biggest support levels to watch. (For more, see: Riot Stock Rallies as Blockchain Tech Goes Mainstream.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.

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