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The price of BMNR shares continued to fall at the beginning of February, as the sale of crypto-related stocks continued. The stock has fallen about 25% in five days, and more than 33% in a month, and is trading around $22.35.
The management team has defended the recent fiat losses from crypto as part of a long-term strategy, but market data suggests that technical weakness is still driving investor behavior and investors are staying away, despite a new defense from Bitmain’s president Tom Lee.
Ethereum Treasury Losses Raises ‘Feature, Not a Bug’ Defense
Concerns have increased approx Bitmain financial data After the data showed huge unrealized losses in their Ethereum treasury.
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As of February 3, Bitmain has invested approximately $14.95 billion in ETH assets. However, the current market capitalization has fallen to about $8.53 billion, which means paper losses of more than $6.4 billion.
At the same time, Ethereum was trading near $2,200, well below Bitmain’s average purchase cost of around $3,800. This difference highlighted how difficult it was for the treasury to fall below the basic purchase level.
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These numbers drew criticism from market watchers, who noted that such large unrealized losses could limit future earnings and put pressure on shareholder returns. Some of them have warned that The accumulated ETH can eventually turn into a sale offer.
In response, CEO Tom Lee defended the strategy, explaining that pullbacks are “a feature, not a bug.” He stated that crypto cycles inherently involve temporary losses and that Bitmain is designed to accumulate assets during periods of decline to achieve better performance over time.
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However, despite this clarification, BMNR shares were unable to attract sustained buying interest following these statements.
The OBV and CMF indicators show that buyers have moved away after the collapse
Market share data suggests that investors started to exit even before the public debate heated up.
The Observable Volume (OBV) indicator tracks cumulative buying and selling pressure by adding volume over days and subtracting it over days. It reflects whether traders are accumulating or discharging.
From the beginning of December to the end of January, the OBV has been forming higher lows, indicating a continued consolidation. But between January 28 and 29, the OBV broke its rising trend line. This showed that retail traders and short-term traders were likely to start offloading the stock.
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OBV follows first, followed by institutional capital.
The Shaken Liquidity Flow (CMF) indicator measures whether money is flowing in or out of an asset using price and volume. Readings above zero indicate accumulation, while negative values ​​indicate capital outflow.
Starting from January 30, the CMF index fell sharply and remains below zero. This confirmed that large buyers reduced their exposure as BMNR’s share price approached a key support level. Both indicators correspond to the structure of the chart.
BMNR stock saw a head and shoulders pattern forming during December and January. When the price failed near the neckline and then broke on February 2 (forming a gap down), the OBV and CMF indicators confirmed this move.
The volume of retail sales weakened first, the large capitals collapsed later, and prices collapsed. The novel eth closet did not reflect “an advantage, not a disadvantage”. Sales driven by this influx of liquidity.
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Key levels of the BMNR stock price determine the next move
After breaking the neck of the head and shoulders and the uptrend line, continue The price of BMNR shares Its wider downward trend, with an expected decrease of more than 30%.
I set several levels of expectations now. On the upside, the initial support is close to $19.26 if the BMNR share price does not recover the level of $22.52 in the day’s frame. Below $19.26, the next major level is at $16.71, which corresponds to the full technical projection of the negative pattern.
If selling pressure accelerates, the extended decline could reach around $9.87, pushing the stock into single-digit territory. On the other hand, the recovery process remains difficult.
The first resistance is located near $22.52. The share price of BMNR must regain this level to slow down the decline. Above that, resistance appears near $25.07 and $28.66. These areas should be crossed to indicate the beginning of the first settlement.
A broader change in the trend would require a break above the $34.46 level, followed by confirmation near $42. For now, both OBV and CMF remain weak, showing that buyers have not returned in force. Until the financial flows become positive and the key resistance is restored, technical pressures are likely to dominate the behavior of the BMNR share price.
