BitMine stock price has gone horizontal since February as the crypto market consolidation continued.
BMNR remains at the important support level at $20, which is much lower than the all-time high of $160.
This consolidation may be the calm before the storm ahead of a strong bullish breakout.
BitMine continues Ethereum accumulation after MAVAN launch
Tom Lee’s BitMine Immersion continues to add more Ethereum tokens into its treasury this week.
Data compiled by Lookonchain shows that the company bought another 50,000 ETH coins worth $108 million from FalconX.
The company has bought ETH tokens worth over $253 million in the last three days.
BitMine ended last week with 4.66 million ETH tokens valued at over $9.8 billion. Its holdings are now equivalent to about 3.86% of the Ethereum supply.
If the current phase of buying continues, it means that the company will get to its target of owning 6% of all Ethereum in the coming months.
Tom Lee’s BitMine has embraced a different business model than Michael Saylor’s Strategy, which makes it a better investment.
One of the differences is that it has a target of owning 5% of all ETH tokens, while Strategy has an open-ended approach.
Another approach is that BitMine is expanding its business in a bid to make more money for the business.
On Wednesday, the company announced that it launched MAVAN (Made in America Validator Network).
The goal is to ensure that it uses its own network to stake its Ethereum holdings.
It also aims to compete with other staking providers like Binance, Lido, and Coinbase in offering staking solutions.
BitMine will start making millions of dollars a year through staking.
Data shows that Ethereum has a staking yield of about 3%, meaning that its 6 million coins will be making 180,000 coins a year.
At the current price, these coins will be valued at over $378 million.
The company will use these funds to fund its dividend, execute its share buybacks, or invest in other companies.
There are signs that Tom Lee aims to convert it into a major technology investor, as evidenced by the recent $200 million investment in Beast Industries, a company owned by Mr. Beast, the biggest YouTuber in the world.
In addition to its staked Ethereum, the company is also making money by investing its cash holdings into government bonds.
It has over $2 billion in cash, which is now earning over 3.5% by simply investing in government bonds.
Ethereum price has formed an inverted head-and-shoulders pattern
Most importantly, there are signs that the Ethereum price has formed a giant inverted head-and-shoulders pattern on the weekly chart.
It has already completed the formation of the head, right shoulder, and neckline.
It is now in the right shoulder, meaning that it will likely rebound in the coming weeks.
If this happens, the coin will likely surge to over $5,000 later this year.
ETH price chart | Source: TradingView
BitMine stock has formed a falling wedge pattern
The daily chart shows that the BMNR stock price has moved sideways in the past few months.
It has formed a falling wedge pattern, a popular bullish reversal sign in technical analysis.
It is also in the accumulation phase of the Wyckoff Theory. This phase is characterised by a sideways movement, which signifies low volatility.
The stock’s Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued rising in the past few weeks.
BMNR stock chart | Source: TradingView
Therefore, the stock will likely rebound and possibly move to the ultimate resistance level of the Murrey Math Lines tool at $37.5, which is about 80% above the current level.
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