“Bears” retain control over the cryptocurrency market. Over the past 24 hours, Bitcoin (BTC) has lost more than 4% and is trading around $7,350. On the side of sellers, there is a recent overbought of the market and lack of positive news from regulators or industry prospects. Altcoins, as usual, follow BTC with more significant drawdowns in the red zone. Technical analysis indicates that the reference cryptocurrency sale has all chances to go on. The relative strength index, which has proved to be excellent on BTC / USD, has reached the neutral zone near 50. The sale may not meet obstacles on its way up to the immersion of the indicator in the oversold area. The breakout of the consolidation area around $7300 may open the way to a rapid decline to 6250 – the previous turning point. More significant support the market will be able to get below $6000. Contrary to the popular belief that the main reason for the decline in the crypto market is futures contracts and institutional “bear”-investors, now, it might be about miners. At first, their number grew at a huge pace, which led to a significant increase in the complexity of the mining algorithm. As mining yields has fallen by 90%, they have started to get rid of their mined bitcoins since January 2018, making a significant contribution to the panic sales. Unlike large investors selling on OTC platforms, miners have become a constant force of pressure on bitcoin within the framework of regular crypto-exchanges. As for the current situation, there is increasing evidence that both industrial and “home” mining on hand-assembled farms is losing its relevance. The price of bitcoin around $6 000 says that miners work at a loss: mining plants are subject to increased electricity tariffs, and the equipment quickly becomes obsolete. Without an increase in the value of the asset, the continuation of mining is called into question. |
