Tom Lee’s BitMine (BMNR) Stock Faces Cost-Basis Risk — Price Breakdown at 10%?
BitMine (BMNR) stock faces significant downside risk due to deep paper losses on its Ethereum holdings and bearish technical indicators.Summary
BitMine Immersion Technologies (BMNR) is in a high-risk phase as its Ethereum holdings are deeply underwater, with an average cost basis of $3,850 against a current ETH price near $1,950, resulting in nearly 49% unrealized losses.
Technical analysis reinforces this risk, showing a hidden bearish divergence between lower price highs and higher Relative Strength Index (RSI) highs, signaling weakening momentum. Furthermore, Chaikin Money Flow (CMF) failed to confirm the recent 26% rebound, indicating a lack of strong institutional backing, and a prior bearish crossover (50-day EMA below 200-day EMA) preceded a major drop.
Key support for BMNR is identified at $17 (a potential 10% drop), with further downside targets at $15 and $11 if that level fails. Recovery requires reclaiming $21, but continued weakness in Ethereum, to which BMNR has moderate correlation, keeps the stock vulnerable to further selling pressure.
(Source：BeInCrypto)