Tom Lee’s Prediction Lifts BMNR Price Hopes, but the Rebound Still Faces a Key Test

BMNR terms dropped astir 22.7% this week, hitting caller lows nether $26. The autumn looks sharp, but the banal is inactive up much than 160% implicit the past six months. Now, a tiny rebound looks apt connected a regular chart. Traders would privation to cognize whether this is lone a bounce oregon the commencement of a larger BitMine recovery.

Tom Lee’s latest telephone connected Ethereum adds substance to the discussion, but the illustration shows a cardinal trial ahead.

BMNR’s agelong descent continues to amusement accent crossed large moving averages. The 20-day EMA already crossed nether the 100-day connected November 14. That crossover lined up with a crisp sell-off, and the 50-day EMA is present closing successful connected the 100-day arsenic well. If that 2nd bearish crossover completes, it signals much downside risk.

But a fewer positives are surfacing beneath the price.

On-Balance Volume (OBV) tracks whether existent measurement is entering oregon leaving. Between August 4 and November 21, the terms made a caller little low. OBV, however, made a higher low. This semipermanent bullish divergence means existent buyers person been accumulating portion the BitMine banal keeps falling. It creates country for a short-term rebound adjacent erstwhile the broader inclination stays weak.

The Chaikin Money Flow (CMF) tells the aforesaid story.

CMF besides made a higher debased implicit the aforesaid play and has present breached supra its falling inclination line. That interruption usually signals that larger wallets are stepping successful again. Do enactment that betwixt November 20 and November 21, the BMNR terms made a little debased portion the CMF flashed different higher low. Another bullish divergence.

A CMF trendline interruption often appears earlier terms bottoms due to the fact that it reflects large-wallet involvement returning.

This CMF space matters much for BMNR than for astir stocks.

Tom Lee has pointed retired that erstwhile institutions physique ample BMNR positions, the superior is often utilized to bargain Ethereum. Rising CMF, therefore, hints astatine 2 things happening together: ample buyers accumulating BMNR and imaginable ETH request returning done BMNR exposure. That could besides beryllium bully quality for the standalone BMNR banal price.

https://twitter.com/funofinvesting/status/1989867984219750740?s=46&t=H-MrTuNvkcokgvCx6TS0Dg

Short term, this gives BMNR capable spot for a rebound attempt. But the inclination flip isn’t confirmed yet.

Short-term charts inactive enactment a rebound idea, but the determination depends connected what happens adjacent with Ethereum. BMNR and ETH transportation a 0.47 correlation, which means they determination successful the aforesaid absorption astatine a mean rate.

Want much token insights similar this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

When ETH stabilizes oregon rises, BMNR usually follows. When ETH weakens, BMNR struggles to clasp immoderate bounce. This matters due to the fact that Tom Lee has already predicted the ETH terms emergence to $7,000. If that prediction holds adjacent marginally, the BMNR terms could effort a bounce.