Bitcoin Goes Parabolic and Takes ARB with it (+900%)

Trade Date : 4 Nov 20

Entry Price: 7.4 (see Post)

Current Price: [stock_market_widget type="inline" template="generic" assets="ARB.L" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

Increase: 1580% (as of 06 Jan 21: ARB at 130p)

Bitcoin continues its relentless move north having broken through its all-time high of $20,000 earlier in December, the cryptocurrency has now cleared $27,000 defying most critics and apparently even gravity itself. In early November, I highlighted a much neglected and undervalued crypto miner listed in the UK, Argo Blockchain: it was trading at 7.4p at the time (see post and analysis): I had an interim target of 9p but anticipated a move to clear all-time-highs around 17p. I was clear that ARB's performance would be predicated on that of BTC

I didn't anticipate BTC's stellar move in such a short amount of time though I have profiled it in numerous posts. Since this was the underlying correlated market, I kept most of the trade open until today when ARB's price went parabolic on news that the share would also be offered over-the-counter in the US (OTC). This effectively allows US investors to take positions in ARB without the company having to maintain dual listings. At the price high today ARB was up 100% on the day in a parabolic move off a big opening gap. ( ARB's OTC listing in the US is under Ticker ARBKF - see quote)

Given that 57% of the 240m shares in issues are held in tight hands (institutions and directors) there remains around 100m shares in the free float and today's trading volume was 46m: with almost 50% of the free float changing hands in one trading session, this may well signal a local price high. As I am a trader and not an investor, I tend to build relatively large positions and manage both risk and reward to ensure my equity curve continues to progress upwards.

As I had built a position in ARB with an overall cost around 5.7p, I took considerable profits today with a multiple of over x6 in a couple of months. I still retain a one-third tranche of the position which I can let run completely free should the price continue to outperform .

Bitcoin has and continues to look stretched on any metric though any weakness in price meets almost instant demand (see chart below). As BTC has eclipsed $28,000 many traders may hold out for the $30,000 next big round number to sell. Given the relatively low volume of bitcoin in existence (around 18.5m at pixel see latest) , price corrections can be sharp when supply outstrips demand. ARB is heavily correlated to BTC so any weakness in the latter will be reflected in the former. That said, ARB is still relatively unknown in the UK and may undergo a sentiment change as BTC stays bullish and awareness of ARB's relative underperformance to its US peers becomes more evident (see RIOT , Marathon Patent Group. Hut 8 and Hive in the table below and their explosive price performances YTD).

Price action over the next few days will be fascinating and while I may forgo additional outperformance by booking profits today, I can participate with my remaining position and respond with less emotion to price moves in either direction

(Please wait while live data quotes load below: mouse onto the table and click on the stock name for the chart to appear, then select timescale: this may take a few moments)

[stock_market_widget type="inline" template="generic" assets="ARB.L" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

US Quoted Stocks

[stock_market_widget type="inline" template="generic" assets="BTC-USD" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

[stock_market_widget type="inline" template="generic" assets="ARBKF" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

[stock_market_widget type="inline" template="generic" assets="HUTMF" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

[stock_market_widget type="inline" template="generic" assets="RIOT" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

[stock_market_widget type="inline" template="generic" assets="MARA" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

[stock_market_widget type="inline" template="generic" assets="HVBTF" markup="{name} ({symbol}) is trading at {price} ({change_pct})" api="yf"];

Click on the stock name in the table to show the price chart: default is 1 month: timescales can be changed by clicking on the desired time in the chart header

[stock_market_widget type="table-quotes" template="black-background" color="#1BBC9C" assets="ARBKF,HUTMF,RIOT,MARA,HVBTF" fields="logo_name,price,change_abs,change_pct,market_cap,52_week_high,52_week_low,volume,forward_pe_ratio" links="{'ARBKF':{},'HUTMF':{},'RIOT':{},'MARA':{},'HVBTF':{}}" display_header="true" display_chart="true" display_currency_symbol="true" pagination="true" search="false" rows_per_page="5" sort_field="logo_name" sort_direction="asc" alignment="left" api="yf"]

One Month Chart /60 Minute Interval Bitcoin (BTC/USD)

(longer timescales will take longer to load as data is pulled dynamically)

[stock_market_widget type="chart" template="basic" color="#1BBC9C" assets="BTC-USD" range="1mo" interval="60m" axes="true" cursor="true" range_selector="true" style=" width: 850px; margin-left: auto; margin-right: auto; background-color: black;" api="yf"]