Signal: Crypto Mining Stock Could Have Room to Run

When we last covered Cipher Mining Inc (NASDAQ:CIFR), the crypto mining stock was trading at all-time highs around $25.52 in early November. Fast forward five months, and despite a trendline of lower highs, CIFR is up 9.1% to trade at $16.83 today, as Bitcoin (BTC) builds separation past $72,000. This breakout has cleared a trendline that could signal its time to buy back in, if past is precedent.

The trendline in question is the stock's 50-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event happened seven other times over the last 10 years, after which the security was higher one month later 71% of the time, averaging a 13.1% gain. From its current perch, a move higher of similar magnitude would take Cipher stock making another run at $20, an area that hasn't been tested since January. 

A short squeeze is in play too. Short interest is down 11% in the most recent reporting period, yet the 57.28 million shares sold short account for 14.6% of CIFR's total available float.

Options look like an attractive route when weighing on the stock's next moves, per its Schaeffer's Volatility Index (SVI) that sits higher than 24% of readings from the past year. In other words, near-term option traders are now pricing in low volatility expectations.