BitMine’s price faces a significant correction, trading near $29 after losing recent bullish momentum. According to detailed technical analysis by experts like Ananda Banerjee, the lack of real institutional support has weakened the recovery. BitMine stock shows structural fragility despite the massive Ethereum purchases strategically made by the company.
Market data reveals that smart money flow is not backing the asset’s current rebound. The Chaikin Money Flow (CMF) indicator remains stubbornly below zero and under a critical descending trendline. This suggests that, although the company accumulates digital assets, big capital is not flowing into the stock value, limiting any serious attempt at a sustained recovery in the short term.
The technical situation worsens considerably with the imminent formation of bearish crossovers on key exponential moving averages. Historically, when the 50-day EMA approaches the 100-day, or the 20-day approaches the 200-day, the asset suffers drastic drops. Similar patterns observed in November triggered declines of 17% and 29% respectively in valuation, putting investors on alert regarding the stability of these companies.
Can institutional investors reverse the current negative trend?
Direct exposure to Ethereum price volatility adds an extra layer of financial risk. If the leading cryptocurrency suffers price corrections, it will amplify the negative impact of the forming bearish technical crossovers. Therefore, correlation with the crypto market could accelerate the descent abruptly if current critical support is not maintained against external selling pressure.
On the price chart, the failure to reclaim the $31.57 level has confirmed buyer weakness. As long as the asset remains below this key technical resistance, the bearish scenario dominates the immediate outlook. Analysts warn that losing this level keeps risks of a deep drop active, invalidating hopes for a short-term rally and trapping bullish investors.
Vital support levels to watch are now situated at $26.99 and $24.15, corresponding to Fibonacci retracements. If these floors give way to pressure, the price could plummet dangerously towards $16.29. However, a clean close above the mentioned resistance could invalidate the bearish thesis and open the path towards $43.83, provided Ethereum shows renewed strength in the market.
