This week is turning out to be a nightmare for Bitcoin enthusiasts who are already stressed with negative price action. On Saturday, Bitcoin looks to have potentially opened doors for a new bottom after dropping to the $19,000 level. The new Bitcoin mining data also supports the same sentiment.
Meanwhile, this new price level means breaking the norm in various forms. The current price of around $19,393 is way below the previous all time high of $19,700 level from 2020. Also, the 200-weekly moving average has also been breached with this price action.
Bitcoin Price Below Mining Cost Level
Latest data suggests BTC current price is closer to the mining expenditure, meaning it is harder for small-scale miners to continue mining. This also throws more light on the real value of Bitcoin in the current scenario. Doctor Profit, a Bitcoin trader, called the situation unsustainable for average miners.
“Bitcoin trades below production cost level now, not sustainable for the average miners. They pay more than they earn.”
But more importantly, it is said that this could be a clear sign of finding the Bitcoin bottom. Although it was not clear as to when exactly there could be a Bitcoin price turnaround, historical data spills beans on it.
The situation could impact the mining activity as lesser number of miners would continue mining if Bitcoin price falls. Likewise, more Bitcoin miners would chip in if the price increases, effectively meaning more returns from mining.
Traces Of Bitcoin Bottom
Every time Bitcoin went below its production price, it marked the bottom for each cycle at the same time, the trader explained. Previous instances when this behavior was witnessed were in January and November of 2017 and most recently in a crash induced by the pandemic situation.
Additionally, recent data from analytics site Glassnode revealed that revenue generated by Bitcoin miners continued to fall. With the mining expenditure increasing and the overall macro scenario in a bad state, miners are less incentivized now.
- Pentagon Raises Damning Concerns Over Bitcoin, Ethereum Security
- Bitcoin Cash Sinks 7% As Its Biggest Advocate Is Accused Of Default
- Here’s Why Ethereum (ETH) Price Can Plunge More Ahead
- This Crypto Winter Suite Could Help Investors In Bear Market
- Terra USTC Price Skyrockets By 75%; Will It Recover More?
- Breaking: No VAT On Cryptocurrency Issuers In Russia, Details
- Just In: Robinhood Lists Chainlink (LINK); Price Up By 5%
- Just In: USDC Parent Inks Major Pact With New York Bank
- Here’s Why Dogecoin (DOGE), Shiba Inu (SHIB) Prices Tumbled
- This Is Why Ethereum (ETH) Recovered Sharply From Below $1K
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?
- Stacks Price Analysis: Reversal Within Wedge Pattern Eyes $0.3 Support
- Tezos Price Analysis: XTZ Rebounds from Yearly Support; is it a good buy?
- Tron Price Analysis: Triangle Pattern Governs the TRX Price Action; Should Coin Holders Worry?
- Dogecoin Price Analysis: DOGE Winning Streak Aims to Reclaim $0.077