The BMNR stock price continues to recoil at the crucial $20 support level, mirroring Ethereum’s performance, which has remained in a narrow channel over 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 markup phases of the Wyckoff Theory, which brought it from $160 to its current $20. As it did so, the stock moved below the 50-week and 100-week Exponential Moving Averages (EMAs), while the Relative Strength Index (RSI) slipped.
This chart shows that the stock has formed a falling wedge pattern, characterized by two converging trendlines. In most cases, this pattern leads to a strong bullish breakout that may occur in the coming weeks or months.
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If this happens, the next important target level to watch is 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 would invalidate the bullish BitMine stock price forecast and signal further downside.
BitMine Stock Needs Ethereum Price to Rebound
The BMNR stock price rebound will depend on Ethereum’s performance, which has remained within a narrow range over 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 for BitMine and other Ethereum treasury companies, such as Bit Digital and ETHZilla.
An Ethereum rebound would be bullish for the company given its large 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 the company will continue to make some returns even when Ethereum remains in a narrow range. Analysts expect the company to eventually generate over $300 million in annual revenue once it completes token staking.
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