Hold onto your swimming caps, because Bitcoin mining is getting as deep as a scuba diving expedition! Analyst James Van Straten thinks that Bitcoin might just hold on to $90k, offering a new opportunity for buyers to dive in. But will it be enough to keep miners from going underwater? 🏊♂️
- Miner capitulation might be on the horizon, but $90k could be the life vest Bitcoin needs.
- The Hash Ribbon indicator signals miner distress, but could it also be a splash of buying opportunity?
Straten points out that the Hash Ribbon, a nifty little gadget that tracks miner profitability and potential market exits, has been raised like a red flag. 🔴 This could mean that Bitcoin miners are in distress and looking for the nearest lifesaver. But don’t worry, history shows that this indicator has also served as a buoy for buying opportunities. Will this trend continue? Only time will tell!
Even with a 4% increase in Bitcoin’s network difficulty on February 9th, Straten still has faith that the $90k-$105k price range will be defended like a castle under siege. 🏰
“Difficulty is expected to adjust 4% to ATHs on Sunday, adding more stress to miners. I have more confidence that $90k is the bottom of this range.”
For those who aren’t in the know, network difficulty is the measure of how hard it is for miners to find a block (mine Bitcoin). A 4% increase means miners need to bring out the big guns and use more computational power. This, of course, puts an upward pressure on average mining costs. 📈
As of February 6th, the average BTC mining cost was $86.5k, according to MacroMicro data. If Bitcoin’s price drops below the average mining cost, miners will be in deep water and feeling the pressure. 🌊
Historically, Bitcoin’s price has always stayed above the average mining cost. So, even with the expected increase in difficulty and more pressure on miners, a drop below the average production cost could be a diving board for buyers if Bitcoin’s price climbs higher later. 🏄♀️
At the time of writing, Bitcoin was valued at $96k, but it might still drop to the range-lows of $91k-$90k if the bearish pressure continues. 🐻
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2025-02-08 20:09