It seems the leader of crypto assets is stuck in a kind of purgatory, having paid off to $5 900 with $6 200. At this level, bitcoin is not too high to sell and make a profit, not too low to exit the market, and not too attractive to mine. This situation puts investors in a difficult position. Can we say that BTC has found its own dead end?
Recently, headlines related to crypto-regulation have been filling news bulletins. Governments of different countries (South Korea, Japan, USA) are taking steps to make crypto trading more transparent. One of the most important points in cryptophane governments to achieve adequate enforcement of the rules aimed at combating money laundering.
Last year, when the growth of cryptocurrencies was observed in the period of opposition between digital independent currencies and States, such news could actually affect the value of bitcoin. Now, studies show that many holders of virtual coins are in favor of regulation. In this case, news about government measures should not affect prices negatively. However, bitcoin fell below $6,000 in the run-up to the weekend, and there is a high probability that it will drop a little more for Saturday and Sunday.
Usually optimistic representatives of the Fundstrat (a company led by the famous bitcoin bull Tom Lee) say that bitcoin should return positions up to $6,300-$6,400 to continue the recovery. However, the set of lost interest now looks unlikely.
According to cryptocurrency trader Ren Noi-Ner, bitcoin is doomed to even more immersion. According to the expert, the number of bears in the market prevails, and the chances that the bulls will win are meager 16%.
"The bearish market means we will test $5,350," Noi-ner said.
Not so long ago, he said that bitcoin is moving to the price when miners will ask themselves: is it worth it to keep the machines turned on. The closer the $5,000 mark is, the less interest there is in bitcoin mining as it becomes unprofitable. The assurances Noi Nera, the miners have gradually refuse from the network.
In early 2018, the hashrate reflecting the power of the mining industry was on the rise. Bitmain and Bitfury now control an overwhelming amount of power. In the March report Fundstrat designated "break even" for mining bitcoin, describing a key level of $8 000. Other companies mentioned even more significant amounts:
"The cost of electricity is $0.03 per 1 kW/h. Morgan Stanley says the break-even bitcoin pools in the amount of $8 600. When the BTC price reaches $6 100, bitcoin miners ' profits will decrease."
Given the high cost of equipment and electricity, it is difficult to imagine that miners would work on sheer enthusiasm. Leaving "miners" is fraught with even greater drawdown, and potentially-the death of the network.
Bitcoin is here to stay, market is just in a correction. Worst comes to worst we see BTC at $1,500, our previous breakout support zone before our run to $20k
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