- BitMine stock has flipped the Supertrend indicator from red to green.
- The stock may have a strong bullish breakout in the near term.
- Ethereum price has also formed bullish chart patterns.
BitMine stock price has flashed a major bullish signal for the first time since December last year, pointing to a strong bullish breakout in the near term. BMNR was trading at $22.65, up sharply from the year-to-date low of $17.23.
BitMine Stock Price Supertrend Indicator Turns Green
The daily timeframe chart shows that BMNR stock has remained within a narrow range over the past few months, mirroring the performance of other Digital Asset Treasury (DAT) companies.
It has remained between the important support and resistance levels at $17.2 and $23.90 in this period.
However, there are signs that the stock is about to go parabolic as the Supertrend indicator has turned green for the first time since December last year. A green Supertrend indicator is one of the most common bullish reversal signs in technical analysis.
The stock has formed a double-bottom pattern at $17.23 and a neckline at $23.90, its highest level in March this year. At the same time, the two lines of the Percentage Price Oscillator (PPO) have soared from minus 12.3 and have crossed the zero line.
READ MORE: Tesla Stock Price Analysis and Earnings Preview: Buy or Sell?
The Relative Strength Index (RSI) has also increased from an oversold level of 25 in February to 58. Therefore, these technicals suggest that the stock will likely continue, potentially to the key resistance level at $34.40, its highest level on January 14, which is about 50% above the current level.
The bullish BMNR stock price forecast will become invalid if it drops below the year-to-date low of $17.23. A drop below that price will point to more downside, potentially to the psychological level of $15.
BitMine is Nearing the 5% Ethereum Buying Milestone
The BMNR share price may be poised for a strong bullish breakout, driven by notable catalysts. First, the company is nearing its Ethereum purchasing milestone. It has bought over 380k coins in the last 30 days, bringing its total holdings to 4.9 million coins.
BitMine’s Ethereum holdings account for a 4.12% milestone, meaning that it will hit the 5% target in the coming months. Unlike Michael Saylor’s Strategy, BitMine has a target of the coins it wants to buy. This means that it will likely stop issuing more shares to buy Ethereum soon.
At the same time, the company has announced plans to repurchase $4 billion in shares, a notable amount for a company valued at over $12.3 billion. It will achieve that by using the free cash flow it will receive from its staking revenue.
If things work out well, BitMine will be making at least 180k Ethereum a year. If the coin jumps to $5,000, its revenue will be over $900 million, a notable amount for a company with just a handful of employees.
Another bullish catalyst for BMNR stock is that the Ethereum price may soon rebound after forming an ascending triangle pattern and flipping the Supertrend indicator from red to green. Spot Ethereum ETF inflows have also jumped in the past few weeks.
READ MORE: NVIDIA Stock Price May Jump to $250 Soon: Here’s Why
