BitMine stock price retreated for five consecutive months, reaching its lowest level since June last year as Ethereum and other altcoins slumped.
Summary
- BitMine stock price dropped for five consecutive months.
- The retreat happened as the Ethereum price crash gained steam.
- BMNR has formed a falling wedge pattern, pointing to a rebound in March.
BMNR stock was trading at $20 on Monday, down substantially from last year’s high of $161. Still, despite this, BitMine continued its Ethereum (ETH) accumulation, a sign that Tom Lee and the team expect a rebound soon.
BitMine added 50,928 ETH tokens last week, bringing the total additions in the last 30 days to nearly 180,000. It now holds over 4.42 million, which is equivalent to 3.66% of all tokens in circulation. These tokens are now valued at over $8.5 billion.
One reason why Ethereum price dropped in February was the lingering fear that Donald Trump would attack Iran, which he did. The fear was that an attack would pump crude oil and gas prices higher and make it hard for the Federal Reserve to cut interest rates.
Therefore, fundamentally, there is a likelihood that ETH and other coins will start rising as investors start focusing on the potential ceasefire. A Polymarket poll shows that odds of a ceasefire happening by March 31 rose to 48. Odds of a ceasefire happening by April 30 jumped to 67%.
The rising odds of a ceasefire explain why crude oil prices did not soar as much as analysts were expecting. Brent and West Texas Intermediate benchmarks rose to $78 and $72, lower than $90, which analysts were expecting.
BitMine has other potential catalysts, including Ethereum’s strong fundamentals, including the rising staking queue, falling Ethereum supply in centralized exchanges, and the rising transactions and network fees.
BitMine stock price technical analysis points to a rebound
The daily timeframe chart shows that the BMNR stock price could be on the verge of a strong bullish breakout in the coming weeks. The two lines of the MACD indicators have formed a bullish crossover, while the Relative Strength Index has moved from the oversold level to the current 40.
BitMine stock has also formed a falling wedge pattern, which is made up of two descending and converging trendlines. The two lines are now nearing their confluence, which may lead to more upside.
If this happens, the next key target level to watch will be the psychological level at $30. On the other hand, a drop below the lower side of the wedge will point to more downside.