Tom Lee’s Bitmine is now closer to achieving its goal of owning 5% of total supply after its recent purchase of 20K ETH. A bearish flag confirmed in the weekly chart of ETH/USDT suggests that a possible price correction may be near.
You can read more about it here:
- Tom Lee Bitmine purchased 20,000 ETH at a cost of $41,98 Million.
- Demand for Ethereum spot ETFs continues to be weak.
- The weekly chart confirmed a head and shoulders pattern with a downward bias.
Bitmine is a technology-focused infrastructure firm run by Tom Lee. acquired The weekend saw the addition of another 20,000 Ethereum worth $41.98m. It follows the acquisition in January of approximately $117million worth of 40,000 ETH.
Bitmine has now reached 71% of its target of owning 5% or more of total circulating stock.
Michael Saylor’s Strategy is not a debt-fueled strategy. Bitmine Immersion Technologies (BMNR), maintains a pristine balance sheet with zero debt, backed up by more than $586 in short-term cash flow and liquid assets.
But the most important strategic move for Bitmine is to switch from passive Ethereum staking to an active Ethereum staking model. Bitmine, by putting to use its massive ETH treasury, is positioned for over $500,000,000 in high-margin annual revenue provided staking returns remain above the 2,5% threshold.
It is common for large players, such as Bitmine, to continue to absorb supply. This creates a shock in supply which can help support the price floor over time.
The overall outlook of Ethereum remains uncertain, as there are still a few bearish catalysts that may overshadow the optimism created by large purchases.
The Ethereum (ETHThe price of ) has been in a downward trend since the middle of January. It dropped over 45% last week to reach nearly $1800. As the market continued to be gripped by fears, macroeconomic and geopolitical instability combined with massive repeating liquidations slowed investor interest.
Since November last year, the spot Ethereum ETFs that had been a major bullish force have seen a series of consecutive months with outflows. The investment products that have lost over $2.5 billion Retail confidence could be eroded by any additional outflows, which can often lead traders to reconsider their trading positions.
Thirdly, the value of the Ethereum blockchain has decreased to $57 billion. This is a substantial drop from $98 billion in October last year. The decline in TVL could lead to a reduction of on-chain utility, which would likely dampen traders’ sentiment and further slow the recovery.
In the weekly chart of Ethereum, it confirmed that a head and shoulder pattern was formed as price fell beneath a crucial support level, $2,800. It is composed of three distinct peak, with the middle one being the tallest and the outer two peaks having a similar height. Technical analysis considers it to be a popular pattern for bearish reversals.
The Ethereum price at the time of publication was near $2,000 which represents another psychologically important support level. This could influence market sentiments for many weeks.
The next significant historical support is $1,000. A drop of this magnitude below the crucial floor can trigger an even deeper decline. Prices may even drop to $800. This is a target for bears calculated by subtracting total head height from the moment at which price breaks below neckline.
A number of technical indicators support this dire prediction. Note that the MACD line is still below zero and pointing down. This indicates a strong downward momentum in the market. The supertrend indicator also flashed red.
Disclosure: This article doesn’t represent investment advice. This page is intended for informational purposes only.
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Source: crypto.news
