Cleanspark Inc. (NASDAQ:CLSK), a well-known Bitcoin (CRYPTO: BTC) miner, has had a roller coaster of a year. While the stock is still up 87% over the last year, it's taken a sharp nosedive recently — down 22.1% year-to-date and a staggering 30.48% in just the last month.
And things might be about to get worse, with technical indicators suggesting the stock is headed toward a death cross, a bearish signal that could indicate further decline.
Chart created using Benzinga Pro
A death cross occurs when a stock's short-term moving average, such as the 50-day, crosses below its long-term moving average, like the 200-day.
For CleanSpark, the stock price has already dipped below critical averages. It's trading at $8.68, while the 50-day simple moving average sits at $14.24 and the 200-day is at $14.07. This kind of technical setup typically signals that investors could be in for more pai as selling pressure intensifies.
Bitcoin Mined But Growth Wanes
Despite the bearish technical picture, CleanSpark is pushing forward operationally. In August, the company mined 478 Bitcoin, down slightly from July's 494.
CleanSpark also reported an average hashrate of 21.3 EH/s for the month, with a peak single-day production of nearly 18 Bitcoin. The firm has ambitious plans, including an additional 65 MW of data center capacity slated to come online this month.
Read Also: Bitcoin Mining Stock CleanSpark Is Tumbling Tuesday: What's Going On?
Expansion Amid Bearish Signs
The company continues to expand, with developments in Georgia, Wyoming and Tennessee.
By mid-September, Cleanspark expects 50 MW from its Sandersville, Georgia expansion to be fully operational, and another 30 MW from a Wyoming facility is also progressing.
Despite these efforts, Cleanspark's share price has been hit hard, possibly due to concerns over Bitcoin's volatile prices and the broader market environment.
Bearish Trend In The Stock Market
While CleanSpark remains committed to growth, the stock's technical setup isn't as optimistic.
All major moving averages indicate a bearish signal, suggesting that CleanSpark's recent downturn could persist. For investors, the looming death cross is a flashing warning sign.
- Iris Energy Joins CleanSpark, Marathon, Riot In Race For Bitcoin Mining Capacity Milestone By 2025: JPMorgan
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