Bitcoin quarrels will “defend” the price above USD 6,500 before halving: Analyst
Bitcoin miners (BTC) want to coordinate the market to maximize revenue as the reward for block 2020 approaches half.
Do the miners control the market?
That was the conclusion of a new Bitcoin price analysis conducted by the popular merchant Filb Filb, while the BTC / USD approached USD 9,000 on July 17.
The largest cryptocurrency has experienced considerable downward pressure this week, following a period of volatility, while analysts still disagree on the factors that are driving the market.
Filb Filb, however, does not imagine that Bitcoin will see new lows this year, as miners want to optimize their profitability as much as possible. They, he said, are firmly in control.
“As Satoshi himself said, he rightly pointed out that the costs of commodities are likely to gravitate towards production costs, why, because the miners will sell on demand where revenues per unit cost per unit. collectively they are discouraged to sell when income <cost, “summarized in the analysis.
The silver coating in mining
According to Filb Filb, the medium-term action is most likely to come from the Bitcoin miners who are selling their mined coins, which can be seen with sales orders of 12.5 BTC (ie, the current mining reward per block). , which in May 2020 will be reduced to 6.25 BTC).
Then they will be covering future production while the marginal cost of existing production is still low, he explains.
“I talked all the time in the bear market about these 12.5 BTC orders,” he says. “They disappeared in the bull market this year and they went back to 13K.”
Filb Filb theorizes that the miners may have been hiring their sale before the division to create a new halving bubble, which would present a shortage of supplies and the opportunity to maximize their realizable income per unit. Then they will defend the new production cost or twice the previous price level of USD 6,500 per Bitcoin. He points out:
"6.5K is the brand that miners will not go down."
As Cointelegraph reported, Bitcoin mining has been transformed in 2019, with low levels of profitability that have led to better than expected results across the industry and to widespread plans to open new facilities.
The low levels and the consequent lack of profitability in mining, added Filb Filb, have made weak actors disappear, while in recent weeks, the difficulty of mining has reached record levels, which highlights the renewed competition of the market and the increase in the computing power of the Bitcoin network.
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