Bitcoin hits $ 3,500, so $ 4,100, so $ 3,500 still
Although optimists have recently stated that the worst was for Bitcoin (BTC), on Monday morning the cryptography market continued to swing in a tumultuous state, going under $ 4,000 (once again), after having made a convincing rebound of $ 3,500 during the Asian trading session on Sunday.
At the time of writing this article, BTC returned to just under $ 3,800 on Coinbase, but fell to $ 3,500 during the early hours of Monday morning while the volume of the sales side climbed to the highs of several days.
Although this drawdown, the fifth of its kind in a week, seemed openly bearish, BTC actually held relatively strong at $ 3,500, a level of "light support" according to eToro's Mati Greenspan.
It looks like we're getting another $ 3,500 test. If it falls, the next support is $ 3000. pic.twitter.com/N7IeGfpc2y
– Mati Greenspan (@MatiGreenspan) November 26, 2018
However, the problem was that BTC again fell back below $ 4,000, causing concerns for the lowest lows and a host of latent downward catalysts in the crypto industry.
The head of Cryptocompare, Charles Hayter, told CNBC that the most recent drawdown of the cryptocurrency market, which sent the aggregate value of all crypto assets to under $ 120 billion, drew attention to the tumultuous Bitcoin hashron number. He explained that due to the fact that the hashrate of the Bitcoin network has seen a sharp decline, down 28% from the beginning of November, the value of BTC has decreased in correlation.
This sentiment is, of course, a reference to the long-standing reflection process concerning the cost of extracting Bitcoin and its relationship to price. Hayter recognized this by telling the aforementioned media outlet:
The idea is that the hash rate gives an idea of what underlying opex (operating expenses) and capital costs people are willing to use to generate bitcoins and give them a reference price.
However, some are saying that the relationship goes on the other side, with critics of the theory noting that the hashrate follows the price, not the other way around.
However, the fact is that hashrate and plunge, and not only this hash declines a rare sight, but that can be detrimental to the short and medium term prospects of Bitcoin and its altcoin brothers. Dovey Wan, a well-known cryptic Asian entrepreneur, recently brought Twitter to touch the precarious mining situation of Bitcoin, issuing the following image and a message that painted a depressing picture for cryptocurrency miners.
Most up-to-date footage – After BTC crashes blowing $ 4000 … miners in China are selling S7 for 5CNY per pound 🤣🤣🤣 pic.twitter.com/nV2Nk8lsLw
– Dovey Wan 🦖 (@DoveyWan) November 25, 2018
Although Wan's video has been called false by some, CoinDesk has made a similar claim about mining, with the founder of F2Pool telling the source that about 600,000 Bitcoin miners have closed their sales in the last two weeks, in correlation with the incursion of BTC to $ 6,000.
All Eyes On $ 3,000 / BTC
And unfortunately, many have claimed that BTC has yet to find its true fund. As reported by Ethereum World News, the $ 3000 level is a fund that has been widely referenced by industry-leading analysts and commentators, including Anthony Pompliano, Mati Greenspan, Michael Moro and dozens of others.
Speaking with CoinTelegraph, Anthony "Pomp" Pompliano, a member of Morgan Creek Digital Assets, noted that the psychological argument indicates that there was still enough pain, which means that no real achievement was achieved bottom / capitulation phase again. The manager of Morgan Creek, an apparent hater of centralized financial institutions, then explained that from a technical point of view, a probable possibility is from $ 3,000 to $ 4,000 for BTC.
From a historical perspective, Pomp also explained that a lower price of $ 3000 could also be logical, noting that historically, Bitcoin drawdowns were 80% +, before adding that this year was & # 39; only & # 39; of ~ 75%.
Keeping this in mind, $ 3000, or a decline of 85% from the all-time high of 2017, could be in the short-term Bitcoin cards, so to speak. Vays echoed this feeling, explaining that $ 3000 is a price point to watch, telling CoinTelegraph viewers that once BTC reaches the $ 3,000 zone, it would be a good idea to start accumulating.
Title Image Courtesy of Icons8 Team Via Unsplash