The BMNR stock price continues to recoil at the crucial support level at $20, mirroring the performance of Ethereum, which has remained in a narrow channel in the past two months. Technical analysis suggests that the BitMine Immersion stock price will stage a strong comeback, potentially to $50 in the foreseeable future.
BMNR Stock Price Prediction: Technical Analysis
The weekly chart shows that the BitMine stock price remained in a narrow range for years. This consolidation was part of the accumulation phase of the Wyckoff Theory.
The coin then entered the markup phase in July last year when Tom Lee became Chairman and started accumulating Ethereum. The markup phase is characterized by vertical movements and the Fear of Missing Out (FOMO).
BitMine stock then entered the distribution and the markup phase of the Wyckoff Theory, which brought it from $160 to the current $20. As it did this, the stock moved below the 50-week and 100-week Exponential Moving Averages (EMA) as the Relative Strength Index (RSI) slipped.
This chart shows that the stock has formed a falling wedge pattern, which is characterized by two descending and converging trendlines. In most cases, this pattern often leads to a strong bullish breakout, which may happen in the coming weeks or months.
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If this happens, the next important target level to watch will be at the Strong, Pivot, and Reverse level of the Murrey Math Lines tool at $50, which is about 160% above the current level.
On the other hand, a drop below the year-to-date low of ~$16 will invalidate the bullish BitMine stock price forecast and point to more downside.
BitMine Stock Needs Ethereum Price to Rebound
The BMNR stock price rebound will depend on the performance of Ethereum, which has remained inside a narrow range in the past few months.
Ethereum’s demand has waned, with the spot ETFs experiencing outflows for five consecutive weeks. Also, the number of transactions and active addresses has continued falling in this period.
On the positive side, the weekly chart shows that Ethereum has settled at the bottom of the trading range of the Murrey Math Lines tool. It has also been forming a multi-year inverted head-and-shoulders pattern, which often leads to a strong bullish breakout.
The coin is now in the right shoulder section, meaning a comeback to the key resistance level at $3,000. Such a move will lead to a strong rebound of BitMine and other Ethereum treasury companies like Bit Digital and ETHZilla.
An Ethereum rebound is bullish for the company because of its huge holdings. It bought over 70k coins last week, bringing the 30-day purchases to 258,495. This purchase brought the total holdings to 4.7 million, which is equivalent to 3.92% of the total supply. If the trend continues, BitMine will get to its target of owning 5% in the next few months.
The accumulation and staking mean that the company will continue making some return even when Ethereum remains in a narrow range. Analysts expect the company to eventually make over $300 million annually when it completes staking its tokens.
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