Price of bitcoin falls, and its viability is under threat
Bears retain control over the cryptocurrency market. In the last 24 hours of Bitcoin (BTC) lost more than 4% and is trading around $7,350. On the side of sellers recent overbought market and the lack of positive news from the side of regulation or the prospects of the industry. Altcoins, as usual, follow BTC with more substantial amount of the subsidence in the red zone.
The technical analysis indicates that the sale of the reference cryptocurrency has the potential to continue. The relative strength index, which has proven successful for BTCUSD, came in the neutral zone near the 50. Sale might not come across obstacles up to dive of the indicator in the oversold area A breakout of the consolidation area around $7300 can open the way to a quick decline to 6250 – previous reversal point. More important support for the market will be able to get below about $6000.
Contrary to popular belief that the main reason for the decline in the stock market are futures contracts and institutional investors as a bear, now probably that the case of the miners. First, their number grew rapidly, which resulted in a significant increase in the complexity of the algorithm of extraction. The lower 90% yield mining from January 2018 they got rid of bitcoins mined, making a significant contribution to panic selling. Unlike large investors who sell in OTC areas, the miners have become a permanent pressure on bitcoin in the ordinary course of cripture.
As for the current situation, there is growing evidence that both industrial and “home mining” on hand-picked farms, lose their relevance. The cost of bitcoin at around $6 000 suggests that the miners work almost at a loss: mining-plants are subject to higher rates for electricity, and the equipment is quickly obsolete.
Without growth in the value of the asset the continuation of mining can be questioned, and with it its viability.