Bitcoin hashrate has dropped quite significantly from 124,250, 397 TH/S to 82,285,031 in less than a week. Hashrate has dropped by over 36% in less than a week, recorded a 20% loss of network value in last 24 hours.
Bitcoin has lost over 50% value in last two weeks because of ongoing coronavirus pandemic fear among global equities, metals and stock markets.
Currently, Miner break even cost is at 7750$, that should increase eventually after Bitcoin halving which is scheduled to take place in May. Bitcoin is currently trading 30% below the miner break-even cost.
Few small scale miners have already started shutting down their operations because of overall unprofibaility of mining bitcoin.
When bitcoin’s price drops below the cost of production, however, miners generally sell the bare minimum required to fund their operations, and that result into bitcoin price drop.
Although Bitcoin could drop further from its current price levels, but Bitcoin can find bottom soon in next 2-4 weeks.
Bitcoin Technical Analysis – 4H
Findings
- Bear Flag formation on 4H Timeframe, which is a bearish pattern.
- Bitcoin is holding support above 21MA, and 50MA should act as an immediate resistance.
- Bollinger bands are tighting up, suggests possibility of big move.
Opinion
In our opinion, Bitcoin can find resistance at 5800-6200$ area, and can drop further from there.
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