Cipher BTC mining - Major upside potential
Updated
CIPHER MINING (CIFR) CIPR
- Inverse Head and Shoulders breakout & retest?
- Above 200 day SMA with turn up
- OBV increasing
- On daily chart we are above the Point of Control which
aligns which closely with purple horizontal
- We could see a retest of this line so I would be DCA'ing from
here in dribbles especially after a big move like this weeks 25% +, regardless I want exposure so ill dip my beak here.
In terms of managing this trade the chart really shows you everything. This is a long term trade with a good risk return ratio. Align the trade with your own risk tolerance and remember to always be patient and keep an allocation aside in case of a lower price entry opportunity. Stop loss is outlined on the chart and should be honored. We can always re-enter the trade at a later date having reviewed the situation. Setting a stop under the 200 day SMA could be used as a trailing type of stop also.
Fundamentals (for fun and stamping the stock into our mind):
- CIPHER appears to be half the size of Marathon Digital Holdings (MARA) which is a well known industry large player
- Cipher have 59,000 mining rigs deployed (MARA by comparison have 105,200 rigs)
- Cipher mined 493 bitcoin in the month of May (MARA by comparison mined 825 in March 2023)
- CIPHER announced record production during the month of May 2023. It appears things are just heating up.
Fabulous Quote from the CEO from back in November 2022 which gives you an idea of the location and their unique offering
“We are delighted to announce that our Odessa data center has begun bitcoin mining operations just 10 months after we broke ground at the site. The start of mining at Odessa represents a critical step in Cipher’s journey to become a market leader in the U.S. bitcoin mining industry. Since going public in 2021, we have built four data centers in Texas and are now one of the lowest cost producers of bitcoin,” said Tyler Page, CEO. “Because of our long-term, fixed price power contract at Odessa, we also have an advantage that few other bitcoin miners have -- the flexibility to mine bitcoin or resell our power to the market, which can help mitigate the effects of falling bitcoin prices.”
- Inverse Head and Shoulders breakout & retest?
- Above 200 day SMA with turn up
- OBV increasing
- On daily chart we are above the Point of Control which
aligns which closely with purple horizontal
- We could see a retest of this line so I would be DCA'ing from
here in dribbles especially after a big move like this weeks 25% +, regardless I want exposure so ill dip my beak here.
In terms of managing this trade the chart really shows you everything. This is a long term trade with a good risk return ratio. Align the trade with your own risk tolerance and remember to always be patient and keep an allocation aside in case of a lower price entry opportunity. Stop loss is outlined on the chart and should be honored. We can always re-enter the trade at a later date having reviewed the situation. Setting a stop under the 200 day SMA could be used as a trailing type of stop also.
Fundamentals (for fun and stamping the stock into our mind):
- CIPHER appears to be half the size of Marathon Digital Holdings (MARA) which is a well known industry large player
- Cipher have 59,000 mining rigs deployed (MARA by comparison have 105,200 rigs)
- Cipher mined 493 bitcoin in the month of May (MARA by comparison mined 825 in March 2023)
- CIPHER announced record production during the month of May 2023. It appears things are just heating up.
Fabulous Quote from the CEO from back in November 2022 which gives you an idea of the location and their unique offering
“We are delighted to announce that our Odessa data center has begun bitcoin mining operations just 10 months after we broke ground at the site. The start of mining at Odessa represents a critical step in Cipher’s journey to become a market leader in the U.S. bitcoin mining industry. Since going public in 2021, we have built four data centers in Texas and are now one of the lowest cost producers of bitcoin,” said Tyler Page, CEO. “Because of our long-term, fixed price power contract at Odessa, we also have an advantage that few other bitcoin miners have -- the flexibility to mine bitcoin or resell our power to the market, which can help mitigate the effects of falling bitcoin prices.”
Note
CIPHER have increased their mining rigs from 59,000 to 70,000 climbing the towards MARA's 100,000+ mining rigs. The BTC mining game is growing steam.Note
Nice 22% move so far and nice bounce off supportNote
This trade has been the most positive out of the four I have covered to date , MAR, RIOT and CLSK (which also has a decent chart)- We are currently on the 200 and POC
- We are resting on the Head and Shoulders baseline
- We are on the RSI diagonal support line (first indicator to watch)
- This is decision time.
Similar to the Cleanspark CLSK Trade, this will be a longer investment position for me and I will set an additional bid at $2.38. Position sizing is small allowing for additional entries should we break down. Those in this for a quicker trade, make sure your stop loss is in place and at a level you are comfortable at. There is a trade to attempt from this level as we re-test the H&S base.
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