Bitcoin price can turn bullish if the 4h candle can close above $ 6800

Bitcoin's recent price action has been devastating for miners, forcing them to shutdown after the price dropped below production costs.

However, the rapid surrender of small miners on the market in the past has always led to sustained growth, long-term stability in the value of Bitcoin and ultimately brought the price to the top of each increase. next. Is this the last round of miners to surrender before the ATH (all-time high) is established?

Miner small losses when Bitcoin price plummeted below production costs

Earlier this month, due to concerns about the Corona virus and its impact on the economy, Bitcoin and other cryptocurrencies dropped to a record.

Even the stock market and safe haven assets like gold are not much better.

When prices fall to low levels, miners are better off buying on exchanges instead of continuing to mine Bitcoin with modern, expensive machines at a lower value than production costs.

However, the production cost of Bitcoin miners is not the same, due to the influence of many external factors such as regional energy costs, scale of operation, etc.

Normally, only the strongest can survive and can survive the biggest storm in life. The recent storm in the cryptocurrency market has 'overshadowed' nearly all the remaining miners.

“2) Today, mining difficulty is reduced the most in the calendar Bitcoin history. Previously, the reduction so much difficulty is a yes signal beneficial for long-term capital deployment ”.

The number of miners that have stopped working has increased rapidly, causing the hash rate to plummet, sometimes even faster than Bitcoin price.

Only the strong can survive

When the hash rate drops, the difficulty of mining Bitcoin will adjust itself to bring production costs more in line with the real value that the asset is trading. The hash rate of the cryptocurrency has just dropped by the second largest in history, making it difficult to adjust the record.

Past data show that after each adjustment Level of difficult The largest in history, the average price of Bitcoin increased more than 1,000% in the following 12 months, more than 160% in the next 6 months and more than 125% in the next 3 months.

“6) After the shutdown, the Bitcoin they receive is allocated to them miner more experienced, more efficient with excellent returns, positioned to accumulate Bitcoin ratios newly tapped bigger than selling it - significantly reducing selling pressure. ”

The basis for this idea is the theory that when small miners disappear from the market, the selling pressure they add to supply and demand begins to weaken, causing supply shocks and eventually, demand begins to rise, causing Asset value surged. Therefore, the strongest miners are usually HODL Bitcoin that they exploit to sell later when the value of Bitcoin rises.

Bitcoin fall below the range when the analysts pay attention to react of the price with threshold main support

At the time of writing, Bitcoin is trading down 7.11% at its current price of $ 6,229, falling below the active Bitcoin range in recent days.

$ 6,600 is the lower boundary of the current trading range, which has been heavily guarded recently but appears to have failed.

If buyers once again regain this level and defend it, the strong selling pressure in the range of $ 6,800 to $ 7,000 could start to decline - opening noticeable doors.

According to the famous analyst Luke Martin, for BTC to rise in the short term, it is imperative that the price close to one of the upcoming 4-hour candles above $ 6,800, similarly when Bitcoin breaks the resistance at $ 5,600. last week.

“BTC has been stuck at resistance 6,$ 800 all week now on.

Want to see price close 4 hours on that level to have possibility of price increase Short-term.

Can use breakout finally at about 5,600 dollars as an example fit”.

How high BTC can go If the bull breaks the resistance?

Trader and analyst Cred also agreed with Martin in a recent tweet, explaining that although Bitcoin's daily market structure has increased, there are still many factors in favor of bears.

Furthermore, he noted that a complete break of the aforementioned weekly resistance level could help Bitcoin "teleport" to the region above $ 7,000.

“Retest weekly resistance.

The daily market structure is increasing but i) weekly closing is decreasing; and ii) have not closed daily above the resistance level (6,$ 900).

My trend is down until the least Higher price 6,$ 900 (daily) but if you resist were break down then price Teleportation is more likely than pullback. ”

As Bitcoin approaches the next week's close for a few days, the short-term trend will be important to identify the medium-term trend.

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

According to AZCoin News

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