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- Argo Blockchain share price has made a strong bullish comeback this week as Bitcoin made a strong comeback.
Argo Blockchain share price has made a strong bullish comeback this week as Bitcoin made a strong comeback. ARBK stock jumped to a high of $2.85, which was the highest level since October 7. It has risen by more than 65% from its lowest level this year and is about 90% below its all-time high. This decline has brought its total market cap to about $80 million.
Is ARBK a good stock to buy?
Argo Blockchain is a leading Bitcoin mining company that operates in North America. It has plants at Baie Comeau, Mirabel, and Helios. Helios, its flagship plant, is a 126k square-foot data center and has access to 800 MW of electricity. The plant uses a proprietary immersion-cooling technology that makes it possible to mine faster in warmer climates.
Argo Blockchain share price has been in a strong downward trend this year for two main reasons. First, Bitcoin price has been in a strong bearish trend this year. It has crashed by more than 60% this year as the Fed hiked interest rates. As a result, mining profitability has crashed hard this year as mining difficulty rose. Mining difficulty has risen to 36.84T while its hash rate is hovering near its all-time high.
Second, Argo Blockchain has seen its revenue crash hard recently. Its revenue in June was just $14.4 million, which was much lower than the previous quarter’s $19.5 million. The company’s revenue in last year’s fourth quarter was over $32.2 million. At the same time, Argo Blockchain has seen its profitability has moved from over $17.4 million the Q2’21 to a loss of $39 million in the past quarter.Â
Therefore, the next key catalyst for the Argo Blockchain share price will depend on the price of Bitcoin. If Bitcoin’s rally holds, there is a likelihood that the stock will continue rising in the coming months.
Argo Blockchain share price forecast
The daily chart shows that the ARBK stock price has been in a strong bearish trend in the past few months. This decline has seen the shares move below the important level at $3.70. It has crashed below all moving averages while the Stochastic Oscillator has moved above the oversold level.
Still, there is a likelihood that this rebound is a dead cat bounce. As such, this could see its shares resume the bearish trend as sellers target the key support at $1.50. A move above the resistance at $3.70 will invalidate the bearish view.
