CleanSpark shares rise 11.47% as bitcoin and crypto-mining stocks recover

Benzinga Pro data showed CleanSpark shares trading at $7.97 on Tuesday at publication time, an increase of 11.47%. The advance accompanied a technical rebound, a bitcoin relief rally and a wider recovery in crypto-mining and artificial intelligence infrastructure stocks. Benzinga Pro recorded CleanSpark session trading volume of 11.075 million shares, against a 100-day average of 18.346 million shares.

Bitcoin rose 1.18% to $77,580 on Tuesday. The Nasdaq gained 1.13%. The S&P 500 advanced 0.62%. Technology outperformed every other market sector with a 1.46% increase. However, market breadth was mixed, with four sectors gaining and seven falling. The technology sector has lost 11.99% over the past 30 days. The technology sector has declined 4.88% over the past 90 days.

CleanSpark's next earnings release has an estimated date of November 24. Consensus forecasts project a loss of 24 cents per share, compared with a loss of 1 cent a year earlier. Consensus revenue estimates stand at $133.58 million.

Benzinga's analyst data show a consensus Buy rating among 15 analysts covering CleanSpark, comprising 1 Strong Buy, 13 Buy and 1 Hold. The average price forecast is $22, implying upside of 178.2%. B. Riley Securities retained a Buy rating on Friday while cutting the price forecast to $21. Canaccord Genuity began coverage on October 22 with a Buy rating and a $20 price forecast. Cantor Fitzgerald retained an Overweight rating on October 16 while reducing the price forecast to $19.

However, CleanSpark still trades below major moving averages despite Tuesday's increase. CleanSpark trades about 10% below the 20-day simple moving average of $8.86. CleanSpark trades roughly 30% below the 50-day simple moving average of $11.36. The gaps below the 100-day and 200-day averages are larger still. The longer-term technical trend remains bearish, reinforced by an October death cross, when the 50-day simple moving average fell below the 200-day average.

The $8.86 resistance level matches the 20-day simple moving average, which commonly acts as an initial barrier during rebounds. The $7.06 support level is near the 52-week low area, where buyers previously supported the stock.