CleanSpark Major Potential
Updated
CleanSpark Inc - 
CLSK
This is a unique mid tier BTC miner that is edging ahead of Cipher Mining in terms of size, production and reserves held (See below for the pecking order of 4 BTC miners).
The CLSK Trade
- Ideal entry would be bounce off 200 DSMA
- Risk/Reward from here is 5.55 which is not bad
- Stop Loss placement at 200 DSMA or POC
Chart Positives
- High Volume is ideal signifying increased interest
,float and momentum
- Price above POC
- Price above 200 DSMA
- Pennant price congestion reaching its decision
point
The Pecking Order for BTC Miners covered to date
1. Marathon Digital
MARA have 156,600 rigs & mined 825 BTC in Mar 2023 (12,964 BTC Reserves)
2. Riot Platforms
RIOT have 95,904 rigs and mined 592 Bitcoin in June 2023 (6,696 BTC reserves)
2. ClearsparkCLSK have 87,936 rigs and mined 575 Bitcoin in July 2023 (1,061 BTC reserves)
3. Cipher Mining
CIFR have 70,000 rigs and mined 493 bitcoin in May 2023 (518 BTC reserves)
Clearspark has earned its place above Cipher mining however both companies have been investing much of their Bitcoin into expanding their production lines this year which is why they have lower reserves than the likes of the well established RIOT.
We will need to keep a close eye on both going forward as they both fully intend to continue to expand. I am already invested inCIFR with a small initial position (previously shared a chart on this).
I'll be looking forCLSK exposure between here and the 200 DSMA. The risk reward is reasonable and the chart is attractive.
PUKA
CLSKThis is a unique mid tier BTC miner that is edging ahead of Cipher Mining in terms of size, production and reserves held (See below for the pecking order of 4 BTC miners).
The CLSK Trade
- Ideal entry would be bounce off 200 DSMA
- Risk/Reward from here is 5.55 which is not bad
- Stop Loss placement at 200 DSMA or POC
Chart Positives
- High Volume is ideal signifying increased interest
,float and momentum
- Price above POC
- Price above 200 DSMA
- Pennant price congestion reaching its decision
point
The Pecking Order for BTC Miners covered to date
1. Marathon Digital
MARA have 156,600 rigs & mined 825 BTC in Mar 2023 (12,964 BTC Reserves)2. Riot Platforms
RIOT have 95,904 rigs and mined 592 Bitcoin in June 2023 (6,696 BTC reserves)2. Clearspark
CLSK have 87,936 rigs and mined 575 Bitcoin in July 2023 (1,061 BTC reserves)3. Cipher Mining
CIFR have 70,000 rigs and mined 493 bitcoin in May 2023 (518 BTC reserves)Clearspark has earned its place above Cipher mining however both companies have been investing much of their Bitcoin into expanding their production lines this year which is why they have lower reserves than the likes of the well established RIOT.
We will need to keep a close eye on both going forward as they both fully intend to continue to expand. I am already invested in
CIFR with a small initial position (previously shared a chart on this). I'll be looking for
CLSK exposure between here and the 200 DSMA. The risk reward is reasonable and the chart is attractive. PUKA
Note
Update Cleanspark -
CLSK- IMO this chart comes in ahead of MARA and RIOT, I just think it looks a lot more promising.
- We are fighting to hold the 200 day SMA and POC.
- The high volume I still consider promising and is demonstrating a lot of trading activity.
- We are very early doors with this company and I believe that any trade here should be treated as a long term investment for BTC’s next bull cycle.
- Previously I advised a stop loss at the 200 Sma and POC. That would have been triggered at this stage. I removed this stop loss for me and I explain why below. This does not mean any traders should remove it. I have a long term plan for CLSK and if you in it for the trade Stop Loss should be and have been honored.
Current CLSK Position
- I entered this trade at $5.85 with a very small entry and remain in the trade with an unrealized loss of 28%.
- I will pluck an additional small position here at $4.08 as part of building a long term position as an investment.
- I would be interested in increasing the allocation significantly below $2.80 or in the event we get an oversold RSI and remain oversold as we did in March 2020.
Note
Cleanspark - CLSK HIGHEST EVER VOLUME RECORDED
Green area = Since I last shared
Whilst I did note ideal stops at the 200 and POC (if lost), I also advised that they would be ideal entry levels.
My position was at an unrealized loss for several weeks, now in 36% profit and hopeful for a pennant breakout.
Look at the that volume folks... highest recorded in one week... gives me so much confidence in this trade.
Note
Folks its looking and smelling like a breakoutNote
AND JUST LIKE THAT, my position is already 80% in profit. When you read the above you can see how my rationale has been built for this trade., at one point i had an unrealized loss of minus 28% adn I doubled down because of the conviction i had in the price structure.
PUKA
Note
Folks we are still 72% in profit and we are sitting right above the 200 WEEK SMOOTH moving average which currently sits at $9.25. FOr those of you trading or swing trading you could take some profit if this level is lost, however, for me, i here to capitalize on the full crypto cycle so if i do take a profit just under $9.25 it will be small and ill let the rest run.
I hope that helps you all gauge what you would like to do next. We are still very very early in this cycle and for those in a spot position for the long term hold i wouldn't be doing anything drastic.
Markets are reacting positively to the FOMC right now, lets monitor things tomorrow. Will it be another green end to the weeK? a green friday? lets see can markets sustain this move.
Any questions shout and I will respond.
Note
Press play on the chart and see the bullish thesis continue to play out: 1. Highest ever volume again for the week – This volume is exactly what we want to see.
2. Bullish engulfing weekly candle – this weeks candle body is larger and engulfing last weeks in the green
3. I expected resistance right here at our current level however we have noting to suggest that the trend is changing at present as per point 1 and point 2 above.
4. The next target is $13.90 at the March 2022 high ( this has been resistance a number of times in the past). This might be a reasonable end of year target.
5. I remain long short and long term. This position has been a long term play. Its just paying dividends early which is ideal and allows flexibility vs only getting in the trade now.
6. If your wanting to get in the trade now I would have to say that you need to have a position small enough that you are comfortable with a pull back to the 21 day moving average, roughly $9.25 at present -14%. Or you take a position at that level $9.25 with a tight stop under it.
My preference is the long term play, my objective has never been quick returns. I like to build positions early and over time and reap the rewards of a trend or exit with a small loss. Please, whatever your position size is or your strategy, ensure patience is core and central, as is your system (risk/stop loss structure). Be comfortable with it. Forget the narratives and news.
A lot of people ran down my
SOFI play recently because it looks like they are cutting crypto from their offering. The chart was clear and had structure allowing for a risk averse trade, why question what price is telling you? Price is the truth. On Sofi it is growing brokerage for all assets, crypto is a small industry and whilst the halo effect of its association would be a detriment, a lot of risk averse people and funds might reinforce their alignment with Sofi because of this decision, Apex are their clearing house for crying out loud. Sofi is not going anywhere. We can never understand what exactly is going on in a company, the narratives shift like the weather, and I'm sure next week Sofi might have a great or bad company news narrative, regardless, we have price to tell us what’s happening, and we can use price and price structure to allow us to frame a risk averse trade. As you can probably tell, I'm very aware of a lot of the fundamentals attaching to these plays, they aren’t what guides me though….if anything they usually push me to take a contrarian play. PRICE OVER EVERYTHING, PRICE IS TRUTH
Note
84% profit at present, forgot to mention that above. Im neither excited or elated. Just focused on the long term trend. When it changes, ill cut. Until then we enjoy the ride.Note
Cleanspark - CLSKOriginally shared 14th Aug 2023 noting v.high volume and plucked a decent position
✅Folks the position is 200%+ in profit
✅Just look at that volume and its still increasing👀
❌ Raising Stop from $4.50 to $6.50 (most recent low)
▫️ A pause here at the Fib 0.618 would be normal.
▫️ Entry off $12.16 could be considered for new players
(stop 200MA).
▫️ The volume hit an all time high week ending 5th Feb
2024 and remains very elevated.
So far the trade of 2024 for me
Note
There is the pause we suspected...
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