The Argo Blockchain PLC (LON: ARB) share price fell 8.97% despite rising Bitcoin prices as sellers stepped in at a crucial resistance level and pushed prices lower.
Bitcoin prices were up 0.26% at writing, while Argo Blockchain shares were down almost 10% at the same time. In the past, Argo Blockchain shares have moved in tandem with Bitcoin prices. But today’s divergence points to a different dynamic.
The last significant announcement from Argo Blockchain was news that it would be one of the first companies to buy Intel’s new Bitcoin mining chips that are expected to be more energy-efficient than currently available chips and sustainable.
Bitcoin prices have been edging higher since late January. Still, Argo Blockchain shares have lagged behind the leading cryptocurrency as investor sentiment towards the company remained mixed, as reflected in the price action.
Today’s selloff is another indicator of the mounting selling pressure on Argo Blockchain shares despite its promising prospects.
Argo Blockchain seems like a decent bet for investors interested in owning companies exposed to cryptocurrencies. The latest decline provides an excellent opportunity for investors to get in at a fair price.
Argo Blockchain is constantly working to improve its Bitcoin mining capabilities and is currently building a state-of-the-art mining facility in Texas that will be fully powered by renewable energy in a bud to stay on regulators’ good side.
The company is considered a leader in the Bitcoin mining industry and is dual-listed on the London Stock Exchange and the NASDAQ OTCQB market. The miner has remained profitable despite the recent Bitcoin selloff.
Argo’s fundamentals are pretty solid and could not be the reason behind the latest drop in its share price. However, the technical price action paints a different story as sellers have significant control over Argo’s share price.
As a short-term trader, I would wait for the price to change direction and rally higher before opening a bullish trade. However, long term investors may buy at current prices since they invest over a much longer time frame.
*This is not investment advice. Always do your due diligence before making investment decisions.
Argo Blockchain share price.
Argo Blockchain share price plunged 8.97% to trade at 71.00p, falling from Friday’s closing price of 78.00p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading