By BitMine stock forms risky pattern as Ethereum treasury grows
BitMine’s stock price retreated for seven consecutive days as the crypto market remained under pressure, with Bitcoin and top altcoins continuing to fall.
Summary
- BitMine share price has formed a bearish pennant pattern.
- The company continued accumulating Etherem and now holds 3.39 million coins.
- Its total holdings are worth over $14.2 billion today.
BitMine Immersion (BNMR) stock dropped to $42.76, its lowest level since September 8, and 73% below its highest level this year.
This crash has mirrored that of other top Digital Assets Treasury companies, which have moved into a deep bear market, with companies like Strategy, Metaplanet, and Trump Media shedding billions of dollars in value.
BitMine stock price crashed after the company announced its latest purchases, which included 82,353 Ethereum (ETH) tokens, bringing its total holdings to 3.4 million. At the current prices, its holdings are worth about $12 billion, making it the biggest Ethereum treasury company in the industry.
BitMine also owns other assets in its portfolio, including 192 Bitcoin (BTC) worth over $20 million and a $62 million stake in Eightco Holdings. It also holds $389 million in cash in its balance sheet.
BitMine’s stock price dipped primarily due to Bitcoin’s and most cryptocurrencies’ ongoing performance. BTC has dropped by over 15% from its year-to-date high, while Ethereum has fallen by 26%.
On the positive side, the Ethereum price has formed a bullish flag pattern on the daily chart, suggesting a potential rebound that could boost its performance. In a statement, BitMine’s Tom Lee predicted that the ongoing ETH crash was healthy and that the token would rebound. He said:
“Most of the time, price leads fundamentals, but at times fundamentals drive ahead, but price ‘converges higher.’ Crypto suffered its largest ever liquidation event on October 10th, and open interest on ETH fell -45% in the past 8 weeks. This reset is healthy and sets the stage for price and fundamentals to eventually converge,”
BitMine stock price chart points to a retreat
The daily timeframe chart shows that the BMNR stock price has pulled back in the past few months. It has dropped from a high of $160 in July to $44 today.
The stock has moved below the 50-day and 25-day Exponential Moving Averages. It has also formed a bearish pennant pattern, which is characterized by a vertical line and a symmetrical triangle. It has already moved below the pennant’s lower boundary.
BitMine’s Relative Strength Index and Percentage Price Oscillator have continued falling. Therefore, the stock will likely have a bearish breakout, potentially to $30, the lowest point in July.
