- BitMine stock has formed a double-bottom pattern on the daily chart.
- Ethereum is also showing some bottoming signs, which may lead to a rebound.
- BitMine has boosted its share repurchase program by 300% to $4 billion.
BitMine stock price has gone horizontal since February this year as Ethereum has remained in a narrow range. This price action, however, may be about to end in the coming days or weeks as technicals point to a BMNR and Ethereum rebound.
BitMine Stock Price Prediction: Technical Analysis
The daily chart shows that the token has remained in a narrow range in the past two months. This consolidation, however, has led to the formation of a double-bottom pattern at $18.18 and a neckline at $23.40. This pattern is a sign that bears are skeptical about placing trades below that price.
Some major oscillators point to more gains in the near term. For example, the Relative Strength Index (RSI) has jumped from 25 in February to 53 today. The Percentage Price Oscillator has also jumped and is about to cross the zero line.
Additionally, the ongoing consolidation is a sign that the token is in the accumulation phase of the Wyckoff Theory, which leads to a strong bullish breakout over time.
If this happens, the next key target to watch will be the 23.6% Fibonacci Retracement level at $28.85, followed by the 50% retracement level at $41.5.
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Ethereum Price is Showing Bottoming Signs
BitMine is the largest Ethereum treasury company, holding over 4.8 million tokens worth over $10 billion. This means its biggest driver is the price of ETH, and its rebound will push Bitcoin’s asset value much higher.
Technical analysis suggests that the Ethereum price may rebound in the near term. It has already flipped the Supertrend indicator from red to green and formed a double-bottom pattern, with its neckline at $2,393, its highest point on March 16. It has moved slightly above the 50-day Exponential Moving Average (EMA).
Therefore, this pattern points to a strong rebound in the near term, with the initial target being at the neckline at $2,393, its highest point in March. If this happens, the next key target will be $2,500, up by 13% above the current level. A move above that level will signal more gains towards $3,000.
An ETH price surge to $3,000 will bring the value of its assets to over $14.4 billion, up from the current $10.6 billion.
BitMine Has Some of the Best Fundamentals
Tom Lee’s BitMine has some of the best fundamentals despite the soaring unrealized losses. In a statement on Thursday, the company said that it would boost its share buyback authorization by 300% from $1 billion to $4 billion. This happened on the same day that it announced its uplifting to the New York Stock Exchange (NYSE).
The company is expected to continue generating income, a trend that may continue to grow as it stakes its ETH tokens on MAVAN. In the future, it aims to hold 6 million ETH token, which will be yielding 3%, which will be bringing 180,000 ETH a year.
At the current $2,160, the company will be making over $388 million. If it moves to its all-time high of $4,950, this amount will be $891 million, which it can use to repurchase shares and make other venture investments.
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