Argo Blockchain (LON: ARB) share price is trading sideways this week. The price action of the Bitcoin mining company closely follows the Bitcoin price. The recent BTC rejection from $25,000 level has induced a similar pullback in Argo Blockchain shares, which are now trading 35% below their year high.
Argo Blockchain PLC is a publicly listed Bitcoin miner. Its shares trade in London Stock Exchange under the ticker LON: ARB. The company’s profitability depends on its BTC production as well as the difficulty of the Bitcoin blockchain.
According to the operational update from Argo, the firm’s Bitcoin production increased by 7% last month. This increase in production occurred despite a 10% increase in BTC network difficulty. The network difficulty of the Bitcoin blockchain adjusts after every 2016 block. This happens in order to keep the block time close to 10 minutes.
As per the most recent Argo blockchain news, the company mined 162 Bitcoin in February 2023. The average daily production during the month came out to be 5.7 BTC as compared to 5.4 BTC in January. This increase in mining rewards has helped the miner to offset the effect of decreased Bitcoin price during the same tenure.
As described above, LON: ARB price chart often mimics the Bitcoin price action. This is because an increase in BTC price means a corresponding increase in the firm’s profitability. However, the price is depicting a strange price action on Tuesday (7th March).
The shares started the day by opening 6% above the previous closure due to an increase in BTC production. However, all the gains were lost within the first couple of hours as the BTC price started to show weakness. On daily timeframe, the price appears to have broken out of the downward trendline.
I won’t be bullish on Argo Blockchain share price until the bulls reclaim the October highs of 21.8p as well as the 200-day MA. This will be an 80% increase from the current price level.
This post was last modified on Mar 07, 2023, 11:24 GMT 11:24