Argo Blockchain (LON: ARB) share price appears to be lagging behind Bitcoin as the leading cryptocurrency attempts to reclaim $28,000. While BTC is trading at its highest level in the last ten months, Argo Blockchain stock is still 38% down from its YTD highs. Our technical analysis shows that a reclaim of a key level may unlock a huge upside.
On Friday, the Bitcoin price kept finding $28,000 once again as most cryptocurrencies kept trading sideways. Despite the sideways BTC price action, Argo Blockchain shares remained volatile. Till press time, the shares of the Bitcoin miner were trading at 13.18 after rising by 0.89%.
Argo Blockchain Stock Remains 38% Down From YTD High
Argo Blockchain started the year as one of the best performers, as the price soared in January 2023. By 7 February, the shares were trading 223% above their year opening. However, the stock tumbled the very next day as the company’s CEO and founder Peter Wall resigned. The Argo Blockchain share price tanked very hard on the news and fell from 21p to 10p within a month.
Since Argo is a Bitcoin miner, its profitability depends on the current Bitcoin price. Due to this reason, Argo Blockchain stock shows a key correlation with BTC, which is now trading above $28,000. In other news, the California-based Roth Capital has upgraded its outlook on the stock of the Bitcoin miner from Sell to Neutral.
Argo Blockchain Share Price Forms Symmetrical Wedge
As shown in the following chart, LON: ARB is forming a symmetrical wedge pattern on its daily chart. In an uptrend, this pattern usually results in an upward breakout. In case of such a breakout, the price might get a rejection from the 16p level. This is because the shares have seen multiple rejections from the same level recently.
A break above the 16p level won’t be easy as this also falls within the 0.5 and 0.618 Fib retracement levels. Nevertheless, in case of a breakout, Argo Blockchain share price forecast will flip bullish and can head for a retest of its YTD high of 21p.
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