BitMine Rally at Risk: Ether’s Drop Creates Bearish Setup
BitMine (BMNR) shares closed last Friday with a 4.35% gain, extending its past week’s climb to 27.78%. However, a significant weekend pullback in Ethereum preceded that rebound. Due to ETH’s more than 9% decline since November 28, BMNR may be under pressure this week. The stock frequently reacts to Ethereum’s weekend swings. The way BMNR trades in the upcoming days can be influenced by this link.
A prominent example occurred between September 19 and September 22, when ETH plummeted roughly 12% over the weekend. BMNR entered the next session with a gap-down of roughly 4.84%. A similar setup currently exists, with Ethereum down over 9% this weekend. This establishes the conditions for a weak start to the new week. This sets the stage for higher volatility and a possible gap-down opening.
BMNR Faces Resistance Despite Slight Signs of Strength
This theory finds support from the BMNR daily chart. Between November 12 and November 28, the price created a lower high, but the Relative Strength Index (RSI) formed a higher high. This discrepancy frequently occurs prior to pullbacks and is a concealed bearish divergence. It raises the likelihood of early-week weakness for BMNR along with ETH’s weekend decline.
On the other hand, BMNR reached a lower high, and CMF reached a higher high between November 14 and November 28. Large purchases may not be completely left just yet, based on this slight divergence. That might restrict the retreat if the gap-down theory holds. However, CMF is still below zero and trading significantly below the declining trend line that connects recent lower highs. That suggests strength is emerging, but not enough to dominate the early portion of the week.
BMNR Could Drop Toward $25 if ETH Struggles
Even if the BMNR stock price opens weak, the structure does not entirely break unless one major support level breaks. $30.66 is the most critical support. In the medium term, a daily closure below this level might move BMNR closer to $25.11. A deeper decline toward $19.95 is conceivable if Ethereum continues to struggle. The first significant resistance on the upside is $35.26. A daily close over this threshold indicates that buyers are taking back control. BMNR may continue to rise toward $43.75 or perhaps $54.49 if that occurs. However, this outcome is unlikely while ETH remains under siege.
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