BitMine (BMNR) is down almost 7% and trading around $29 after surging 15% on massive Ethereum purchases. Although this recovery temporarily helped stabilize sentiment, the recent decline in Bitmine prices shows that the recovery is still fragile.
Both big money flows and trend signals suggest the rally has not gained enough confirmation yet.
sponsored
Weak money flows and impending crossover limit rebound
Chaikin Money Flow (CMF), which tracks whether large buyers are supporting prices, remains below zero and trading below the downtrend line. This means that funds flowing into BMNR are weak even though BMNR continues to purchase large quantities of Ethereum.
This is important because over the past two months, whenever CMF approaches this trend line and the zero line, BMNR has staged a short rebound, which later failed. The only time a bull market took place was in late September, when the CMF rose above zero. The move sent the stock price up 39%.
At this point, CMF doesn’t even come close to reproducing that signal. Expectations for a recovery remain weak until both the trend line and zero line are broken.
Trend pressure is also increasing. Two bearish crossovers are forming.
The 50-day EMA approaches the 100-day EMA, and the 20-day EMA approaches the 200-day EMA.
EMA crossovers track average price trends. Similar crossovers occurred on November 3 and November 14, causing declines of 17% and 29%.
Because BMNR holds a large amount of ETH, it is also exposed to Ethereum fluctuations, which further increases downside risk.
If ETH weakens, its impact could be amplified as crossovers form.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
sponsored
BitMine price levels show why bounces remain vulnerable
On the price chart, BMNR price failed to regain $31.57, a similar level previously highlighted as the first sign of real strength. BitMine price rose close but was unable to close above it, confirming that buyers are not in control.
The bearish scenario remains valid as long as BMNR remains below $31.57.
The main downside levels are currently as follows.
Sponsored $26.99 (23.6% return) $24.15 (38.2% return, stronger support)
If both of these levels break, BitMine price could even head towards $16.29.
These evidences show why the recovery remains uncertain. Barring a CMF breakout and a close above $31.57, the Bitcoin rally will continue to face resistance, leaving room for a deeper pullback on the chart.
However, a clean close above $31.57 could invalidate the bearish case for now and could even push BitMine price towards $43.83. But for that to happen, Ethereum will also need to show strength.
