- BitMine stock price formed a falling wedge pattern on the three-day chart.
- The chart points to more upside in the coming weeks.
- There are other potential catalysts, including Ethereum price recovery.
BitMine stock price remains in a technical bear market after falling from the all-time high of $160 to the current $19.45. This crash has reduced its market capitalization from over $17.5 billion to $8.54 billion. Still, technical analysis suggests that the BMNR stock may be on the cusp of a strong bullish breakout in the near term.
BitMine Stock Price Prediction: Technical Analysis
The three-day timeframe chart shows that the BMNR share price has remained in a bear market, stuck below the Supertrend indicator, a sign that bears are in control for now.
BitMine is about to form a mini death cross as the spread between the 50-day and 200-day Exponential Moving Averages (EMA) narrows. It has also remained below the Ichimoku cloud indicator. All these indicators suggest the stock may continue to fall in the coming weeks.
Most importantly, the stock has formed a falling wedge pattern, with its two lines nearing confluence. The upper side of the wedge pattern links the highest swings since October last year. Also, the lower side of the wedge links the lowest level in September last year.
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BitMine’s share price has also formed a bullish flag pattern, a common bullish continuation sign in technical analysis.
Therefore, the most likely BitMine stock price forecast is bullish, with an initial target at the psychological level of $25. A move above that target will signal further gains, potentially to the key level at $30.
BitMine Immersion Has Some Major Catalysts
There are a few reasons why the BitMine Immersion stock price may rebound in the coming weeks or months.
First, the Crypto Fear and Greed Index has retreated to the extreme fear zone of 10. This retreat happened as Bitcoin and most altcoins continued falling this year. In most cases, crypto bull runs normally start when there is extreme fear in the market.
Second, BitMine’s staking is helping it to offset the ongoing Ethereum price crash. BitMine had staked millions of tokens, a move that will make millions of dollars in the future as the coin has a staking yield of nearly 3%. The staking element makes it a better Digital Asset Treasury (DAT) company than Strategy.
Third, BitMine’s short interest has jumped in the past few months. It now has a short interest of 7%, making it a good candidate for a short-squeeze as we saw with GameStop a few years ago.
Fourth, the BMNR stock price may benefit from ongoing accumulation by top Wall Street firms such as Morgan Stanley, ARK Invest, Goldman Sachs, and BlackRock. Over 400 institutional investors now hold nearly 50% of the company, a sign that they expect it to rebound in the near term.
Additionally, BitMine’s share price may benefit from a potential Ethereum price rebound, as its fundamentals remain strong. Historically, ETH has bounced back whenever it enters a bear market.
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