Tom Lee’s Prediction Lifts BMNR Price Hopes, but the Rebound Still Faces a Key Test
BMNR worth dropped nearly 22.7% this week, hitting recent lows below $26. The fall seems to be sharp, but the inventory continues to be up greater than 160% over the previous six months. Now, a small rebound seems to be doubtless on a every day chart. Traders would wish to know whether or not that is solely a bounce or the begin of a bigger BitMine restoration.
Tom Lee’s newest name on Ethereum provides gasoline to the dialogue, but the chart exhibits a key check forward.
Buying Pressure Returns, but Trend Signals Stay Weak
BMNR’s long slide continues to point out stress throughout main transferring averages. The 20-day EMA already crossed below the 100-day on November 14. That crossover lined up with a sharp sell-off, and the 50-day EMA is now closing in on the 100-day as effectively. If that second bearish crossover completes, it indicators extra draw back danger.
But a few positives are surfacing beneath the worth.
On-Balance Volume (OBV) tracks whether or not actual quantity is getting into or leaving. Between August 4 and November 21, the worth made a recent decrease low. OBV, nonetheless, made a increased low. This long-term bullish divergence means actual patrons have been accumulating whereas the BitMine inventory retains falling. It creates room for a short-term rebound even when the broader pattern stays weak.
The Chaikin Money Flow (CMF) tells the similar story.
CMF additionally made a increased low over the similar interval and has now damaged above its falling pattern line. That break often indicators that bigger wallets are stepping in once more. Do be aware that between November 20 and November 21, the BMNR worth made a decrease low whereas the CMF flashed one other increased low. Another bullish divergence.
A CMF trendline break usually seems earlier than worth bottoms as a result of it displays large-wallet curiosity returning.
This CMF angle issues extra for BMNR than for many shares.
Tom Lee has pointed out that when establishments construct giant BMNR positions, the capital is commonly used to purchase Ethereum. Rising CMF, subsequently, hints at two issues taking place collectively: giant patrons accumulating BMNR and potential ETH demand returning by means of BMNR publicity. That is also excellent news for the standalone BMNR inventory worth.
Short time period, this provides BMNR sufficient energy for a rebound try. But the pattern flip isn’t confirmed but.
BMNR Price Levels: The Test That Decides the Next Move
Short-term charts nonetheless assist a rebound thought, but the transfer will depend on what occurs subsequent with Ethereum. BMNR and ETH carry a 0.47 correlation, which suggests they transfer in the similar route at a average charge.
Want extra token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
When ETH stabilizes or rises, BMNR usually follows. When ETH weakens, BMNR struggles to carry any bounce. This issues as a result of Tom Lee has already predicted the ETH worth rise to $7,000. If that prediction holds even marginally, the BMNR worth may try a bounce.
The first upside barrier sits at $32.58. Clearing this degree with CMF nonetheless rising, probably above the zero line, would affirm the rebound and open room towards $36.88. If ETH picks up momentum at the similar time, the transfer can prolong towards $43.82, which is the bigger retracement zone tied to the final breakdown.
This is the place the $7,000 ETH outlook turns into related — solely an ETH restoration can flip BMNR from a rebound into a pattern.
But the danger stays. If BitMine (BMNR) loses $25.63, the subsequent assist stands close to $20.69, nearly 20% decrease. That drop traces up with earlier corrections triggered by EMA crossovers, and the similar danger sits in entrance of the inventory now as the 50-day EMA closes in on the 100-day. If that crossover completes whereas ETH stays weak, the bounce fades and the downtrend continues.
This is the key check: the BMNR worth should reclaim $32.58 with enhancing CMF and no less than some ETH stability. Without that, the rebound stays non permanent and the $20.69 stays in play.
The put up Tom Lee’s Prediction Lifts BMNR Price Hopes, but the Rebound Still Faces a Key Test appeared first on BeInCrypto.
