The BMNR stock price has crashed by over 80% from its all-time high amid the ongoing Ethereum price retreat. This retreat, however, could be about to end after the BitMine shares formed a rare bullish chart pattern as top companies like Ark Invest, Morgan Stanley, and BlackRock continue buying.
Top Wall Street Companies are Buying BitMine Stock
The BMNR stock price may bounce back as some of the top players in Wall Street continue accumulating the shares.
Data compiled by Yahoo Finance shows that Morgan Stanley has become the biggest holder with over 12.1 million shares worth over $331 million.
Cathie Wood’s ARK Invest is the second-biggest holder with 9.4 million shares worth over $256 million. BlackRock holds 9.04 million shares, while Goldman Sachs, Vanguard, and Bank of America hold shares worth $141 million, $128 million, and $85 million.
The other top BitMine holders are companies like Charles Schwab, VanEck, and Citigroup. Combined, the top ten holders account for about 47% of the entire company. Most importantly, there are 457 institutional holders of BitMine shares.
Another important aspect is that some of these companies have been buying the stock aggressively. For example, Bank of America increases its holdings by 1,668% from the previous quarter. Goldman Sachs boosted by 588%, while Citigroup increased by 542%.
To be clear: most of these companies don’t directly own the BMNR stock. Instead, they hold it either for their institutional or high-net-worth investors, or through their ETFs.
Wall Street analysts are largely bullish on the BMNR stock despite the recent crash. Data compiled by Yahoo Finance shows that the average stock target among these investors is $43, much higher than the current $43, much higher than the current $20.
The bullish case for BitMine is that the Ethereum price will ultimately bounce back from the current crash. For example, Tom Lee has predicted that the coin will have a V-shaped recovery as it has done eight times since 2018.
BitMine Stock Price Technical Analysis
The three-day timeframe chart shows that the stock has been in a strong downward trend in the past few months. As a result, it has remained below all moving averages and the Supertrend indicator. Also, the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued falling.
On the positive side, the stock is about to get oversold, which may lead to a rebound. Also, it has formed a falling wedge pattern, whose two lines are about to converge.
Therefore, there is a likelihood that the stock will bounce back in the coming weeks. Such a move will push it to the key resistance level at $33, its highest level on January 15.
On the other hand, a drop below the key support level at $16, the lower side of the wedge will point to more downside.
