BitMine stock price continued its consolidation at the crucial support level at $20 as the crypto market remained on edge. BMNR stock trades at $2.35 and is down by 27% this year. Still, the stock may be on the cusp of a major breakout in the coming weeks after forming a highly bullish chart pattern.
BitMine Stock Price Prediction: Technical Analysis Points to a Rebound
Technical analysis points to an eventual BMNR rebound in the coming days or weeks. One of the main signals is the fact that it has slowly formed a falling wedge pattern since October last year.
A falling wedge pattern is made up of two downsloping and converging trendlines. It is also characterized by falling volume. In most cases, the asset tends to rebound when the two lines are nearing their confluence.
BitMine has also formed a bullish divergence chart pattern, which happens when top oscillators are rising while the asset is falling. In this case, the Percentage Price Oscillator (PPO) formed a bullish crossover on February 23 and the two lines are pointing upwards.
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The Relative Strength Index (RSI), on the other hand, moved from the oversold level of 25 to the current 44. That is a sign that the indicator is also forming a bullish divergence, which often results into a strong bullish breakout.
There are signs that Ethereum has moved to the accumulation phase of the Wyckoff Theory. This phase is characterized with sideways movement and low volume.
Therefore, the most likely BitMine stock price forecast is bullish, with the next key target being the psychological level at $30.
BMNR to Benefit From a Crypto Market Bottom
The main fundamental catalyst for BitMine and other top cryptocurrencies will be the bottoming of the crypto industry, which will boost its Ethereum holdings.
One possible reason why the crypto market may bottom soon is that the war in Iran may end soon, despite the ongoing rhetoric.
While Donald Trump has said that the US can fight for a long time and entertained the idea of boots on the ground, the reality is that this is an election year, and the war is highly unpopular among the voters.
Therefore, there is a possibility that Trump will decide to take the wins and tout them to the voters. For example, he may point to the killing of Ayatollah Ali Khamenei and most senior officials and the destruction of Iran’s military.
Signs that the war is ending would be highly bullish for Ethereum and other cryptocurrencies. A good example of this is what happened on Wednesday this week when crypto prices jumped after a report said that Iran had reached out to the United States for talks.
Ethereum’s technicals are also supportive of the Ethereum price as the Relative Strength Index and the PPO have formed a bullish divergence pattern. The coin has also formed a double-bottom pattern, which often leads to a strong comeback.
BitMine would benefit from an Ethereum comeback because it is the biggest holder with over 4.3 million tokens. Its hope is to accumulate 6 million tokens and stake them over time.
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