Argo Blockchain (LON: ARB) share price is really lagging despite a strong surge in the Bitcoin price in November. Since it is a Bitcoin mining firm, its stock price usually follows BTC. However, this hasn’t been the case for the past few weeks.
At the moment, the price appears to be stuck at the 8.5p support. This is a very strange price action as in most cases, the price reacts very quickly after hitting such a significant level. As mentioned in my previous forecasts, this level may act as a line in the sand for many technical analysts.
The price has remained almost unaffected despite multiple rejections of Bitcoin from the $38-$38.5k region. This shows a consolidation in the Bitcoin mining stock which is awaiting a major breakout in Bitcoin. Therefore, I expect a major move in ARB if BTC soars above $38,000 in the coming days.
Another reason behind the sluggish price action could be the recently reported net loss of $9.9 million in its Q3 earnings report. Nevertheless, Argo Blockchain share price now solely depends on the bulls’ ability to hold the 8.5p support level.