Riot Platforms stock price is defying gravity as Bitcoin sleeps

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Riot Platform’s share price has surged to the best level since April 2022.
This rally is taking place as Bitcoin stays at $30,000.

Riot Platforms stock price has made a bullish breakout even as Bitcoin stays in a deep consolidation part. The stock has risen prior to now three straight days and is now buying and selling on the highest stage since April final yr. In all, the shares have jumped by greater than 430% from the bottom stage final yr.

Mining stock is doing properly

Riot Platforms, previously identified as Riot Blockchain, is one of many largest Bitcoin mining firms on the earth. Therefore, like different mining firms, the agency makes cash when BTC is doing properly.

Bitcoin has carried out properly this yr as its price jumped by greater than 90% this yr. Recently, nevertheless, demand for Bitcoin has eased whereas its price has remained above the essential level at $30,000. Bitcoin liquidations have additionally dropped sharply prior to now few days.

Therefore, the Riot Platforms stock price is rising for 2 principal causes. First, some analysts are nonetheless bullish on Bitcoin. I wrote that analysts at Standard Chartered see BTC hitting $120,000 by 2024. In a separate report, Tim Draper, a billionaire investor, mentioned that he expects that BTC will surge to over $325k within the coming years.

Second, traders consider that Riot will enhance its mining capability within the coming months. The firm lately acquired 33k Bitcoin miners for $163 million. So, how excessive can RIOT stock rise?

Riot Platforms stock price forecast

Turning to the each day chart, we see that the RIOT share price has been in a powerful bullish pattern prior to now few months. This rally culminated within the shares leaping above the important thing resistance stage at $14.37, the earlier YTD excessive.

Riot Platform’s share price ha additionally moved above the 25-day and 50-day shifting averages whereas the Average Directional Index (ADX) has moved to 26.50 An ADX determine above 20 is an indication that the bullish pattern will proceed.

Therefore, whereas a pullback is potential, there is a chance that the RIOT share price will proceed rising as consumers goal the resistance stage at $20. A transfer above $20 will open the potential of the shares shifting to $23.60 (March 22 excessive).