CleanSpark, Inc.Long
Double Bottom
CLSK
Potentially a Double Bottom forming on the daily chart.
When the next low is printed I´m going to pay attention to if the daily chart prints Bullish Divergence on the RSI. If yes and we see upwards momentum in price with continuation it would confirm that the bottom is in for CLSK and we go up from here.... Possibly in to a parabolic phase of the market which also signals the end is near. for this cycle.
BTC
This all is dependent on what the price does for BTC. The BTC chart is a leading indicator when analyzing and trading CLSK. If/when BTC sets in the low of the present correction and pushes price up with continuation, first then the price of CLSK has a chance to break to the upside.
MARKET SENTIMENT
Right now in time of writing the market sentiment is cracking and the FEAR & GREED indicator is at 64 signaling that we are starting to see a reset of the market sentiment. This indicates that people that is suffering losses on their trade are willing to sell at a loss in order to salvage their hard earned money. A reset of the market sentiment is good for future price apreciation
"It is always the dumpiest before the pumpiest" as one smart guy once said.
WHERE IN THE CYCLE ARE WE?
Zooming out and watching previous cycle leading in to the CLSK top in 2021 we see that CLSK topped out 100 days before BTC did. Now one can assume that both BTC and CLSK are more mature assets now. How that affect its price-action we will hopefully live to see.
VOLUME
Looking at the volume on the chart we can see there is a substantial amount of volume traded at this times of lower prices... sellers are leading the race hence the price declines BUT... WHO is buying? Is it retail? I don´t think so... keep in min the market sentiment is cracking at the moment and scared money is probably letting go of their positions.
FUNDAMENTALS/b]
I believe CLSK is a bargain at $10. Why? Because they at the time of writing are mining bitcoin at a cost of around 55k / BTC and a time when price is around 100k / BTC, AND they are hodling their bag, i.e. not selling.
Accounting The FASB have adopted the FAIR VALUE ACCOUNTING for companies holding BTC and that could potentially boost the value of CLSK significantly, watch next earnings report.
Dilution CLSK have been diluting their shares significantly over the last year. In doing this they have been growing their hashrate to stay competitive which is good in the long run, shitty in the short run.
The last vote on issuing more common stock got approved in Q4 2024, in doing this they mitigate the dilution by featuring a capped call option meaning they will not be diluting any more shares until price reaches above $24.
MACRO
The liquidity has been increasing during 2024, i.e. there has been money printing by lowering interest-rates and other stimulatives. Jerome Powell raised a finger for inflation concerns as we move in to 2025 leading to a market decline as the fears are the liquidity (money printing) will slow in 2025.
COUNTER ARGUMENT
If the liquidity injection slows down in 2025 we will probably see markets turn over and a recession is likely to kick in full throttle. This would take us in to a bearmarket and all bullish bets are of.
CONCLUSION
BULL If the bullish bet is on I am expecting price to reach at least $24 before dilution starts to kick in.
BEAR If the moneyprinter stops all bets are of and we sell our bags to fight another day.
Potentially a Double Bottom forming on the daily chart.
When the next low is printed I´m going to pay attention to if the daily chart prints Bullish Divergence on the RSI. If yes and we see upwards momentum in price with continuation it would confirm that the bottom is in for CLSK and we go up from here.... Possibly in to a parabolic phase of the market which also signals the end is near. for this cycle.
BTC
This all is dependent on what the price does for BTC. The BTC chart is a leading indicator when analyzing and trading CLSK. If/when BTC sets in the low of the present correction and pushes price up with continuation, first then the price of CLSK has a chance to break to the upside.
MARKET SENTIMENT
Right now in time of writing the market sentiment is cracking and the FEAR & GREED indicator is at 64 signaling that we are starting to see a reset of the market sentiment. This indicates that people that is suffering losses on their trade are willing to sell at a loss in order to salvage their hard earned money. A reset of the market sentiment is good for future price apreciation
"It is always the dumpiest before the pumpiest" as one smart guy once said.
WHERE IN THE CYCLE ARE WE?
Zooming out and watching previous cycle leading in to the CLSK top in 2021 we see that CLSK topped out 100 days before BTC did. Now one can assume that both BTC and CLSK are more mature assets now. How that affect its price-action we will hopefully live to see.
VOLUME
Looking at the volume on the chart we can see there is a substantial amount of volume traded at this times of lower prices... sellers are leading the race hence the price declines BUT... WHO is buying? Is it retail? I don´t think so... keep in min the market sentiment is cracking at the moment and scared money is probably letting go of their positions.
FUNDAMENTALS/b]
I believe CLSK is a bargain at $10. Why? Because they at the time of writing are mining bitcoin at a cost of around 55k / BTC and a time when price is around 100k / BTC, AND they are hodling their bag, i.e. not selling.
Accounting The FASB have adopted the FAIR VALUE ACCOUNTING for companies holding BTC and that could potentially boost the value of CLSK significantly, watch next earnings report.
Dilution CLSK have been diluting their shares significantly over the last year. In doing this they have been growing their hashrate to stay competitive which is good in the long run, shitty in the short run.
The last vote on issuing more common stock got approved in Q4 2024, in doing this they mitigate the dilution by featuring a capped call option meaning they will not be diluting any more shares until price reaches above $24.
MACRO
The liquidity has been increasing during 2024, i.e. there has been money printing by lowering interest-rates and other stimulatives. Jerome Powell raised a finger for inflation concerns as we move in to 2025 leading to a market decline as the fears are the liquidity (money printing) will slow in 2025.
COUNTER ARGUMENT
If the liquidity injection slows down in 2025 we will probably see markets turn over and a recession is likely to kick in full throttle. This would take us in to a bearmarket and all bullish bets are of.
CONCLUSION
BULL If the bullish bet is on I am expecting price to reach at least $24 before dilution starts to kick in.
BEAR If the moneyprinter stops all bets are of and we sell our bags to fight another day.
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