- Riot Platforms share price has entered a deep slumber recently.
- This price action is because of the price action of Bitcoin.
- The shares could still bounce back if BTC jumps above $31,000.
Riot Platforms stock price remained in a tight range this week even as the Dow Jones and the Nasdaq 100 index plunged by more than 3%. The shares wavered as Bitcoin continued consolidating below the crucial resistance level at $30,000. Despite the consolidation, RIOT shares remain over 470% above this year’s lowest point.
Bitcoin price consolidation
Riot Platforms is one of the biggest Bitcoin mining companies in the world with a market cap of over $3.1 billion. It competes with the likes of Marathon Digital, which I covered here. Other mining companies are Cipher Mining, Argo Blockchain, and Hut8 Mining.
Riot Platforms’ business does well depending on the overall performance of Bitcoin and other cryptocurrencies. It outperforms Bitcoin when its price is rising and vice versa, which explains this year’s surge.
However, Bitcoin price has recently entered a deep slumber as demand wanes. It has remained below the important resistance level at $30,000.
Despite this, analysts believe that Riot Platforms will do well this year since Bitcoin has been a bit stable. Data shows that analysts expect the company’s revenue for the second quarter will come in at $85 million, up from the previous $33 million. The firm’s revenue was $72 million in the same quarter in 2022.
Riot Platforms mining production slipped in July. In a report, the company said that its production fell by 11% from June and by 29% from the same period in 2022. It sold Bitcoins worth $12.1 million after selling 400 BTCs. The company’s CEO said:
"Riot’s self-mining operations mined 410 Bitcoin in the month of July, while our power strategy generated $6.4 million in power credits and $1.8 million in demand response credits.”
Riot Platforms stock price forecast
The 4H chart shows that the RIOT stock price has moved sideways in the past few days. It has formed a symmetrical triangle pattern that is shown in black. The shares have moved above the 25-period and 50-period moving averages.
At the same time, the Average True Range (ATR) has retreated, signaling that volatility has eased. Also, the stock has formed what looks like a bullish pennant pattern. Therefore, the outlook is bullish, with the next support level to watch being at $20.58.
This view will only happen if Bitcoin moves above the resistance level at $30,000 and resumes its bullish trend.
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