[2018-09-07] $6K Ahead? Bitcoin Price Plunges After Brief Recovery

Samarkand

sr. member

Activity: 658

Merit: 282

Quote from: BitHodler on September 09, 2018, 04:04:59 AM

...
Bitcoin's hashrate has been going up consistently throughout this year so far, while pretty much every other coin has seen only stagnated or declining hashrates. It clearly shows miner dedication.
...

This could be caused by something different than miner dedication.
Maybe the miners are just aware that if Bitcoin (= the most popular
and well-known cryptocurrency) fails spectacularly, the entire
cryptocurrency market will be doomed.

Just imagine the fallout if the hashrate would plummet and the BTC
network would succumb to a malicious attack. Probably all
cryptocurrencies would immediately drop 90 % and the miners
would be stuck with a ton of hardware and lost investments.

They are kind of forced to dedicate hash power to BTC when necessary,
because of the reasons mentioned above. Bitcoin´s gametheoretical
incentives ensure its survival once again Grin

BitHodler

legendary

Activity: 1526

Merit: 1179

Quote from: Samarkand on September 08, 2018, 04:54:56 AM

The floor might even be higher in the future as the average
cost of mining a single BTC continues to rise.

Bitcoin's hashrate has been going up consistently throughout this year so far, while pretty much every other coin has seen only stagnated or declining hashrates. It clearly shows miner dedication.

If miners were just as dedicated to altcoins, they wouldn't drop it so easily just because in the very short term it isn't profitable, especially so with how them leaving for whatever period of time makes the network less secure.

Platforms such as Nice Hash where you can rent hashrate are great for those selling, but people don't realize how easy it is to abuse that platform to attack plenty of altcoin networks, and it happened already.

veleten

legendary

Activity: 2016

Merit: 1107

Quote from: Samarkand on September 08, 2018, 04:54:56 AM

Quote from: aso118 on September 07, 2018, 10:07:14 PM

... the price seems to have stabilized at around $6,500 now.

I strongly suspect that this is a level that will be a very strong support, because
this is around the breakeven point for many miners. Of course it might go lower
temporarily as miners with big "war chests" try to bankrupt their competitors, but
in the long-term I´d be extremely surprised if the price would actually
go lower than this. The floor might even be higher in the future as the average
cost of mining a single BTC continues to rise.

it makes sense, but bitcoin has proven on many occasions that it is too unpredictable
if you see it fall below 6.000 aka profitable to mine levels, this would cause some miners to stop mining
the dificulty will drop but there always be miners who mine to hodl and the wannabe startups with cheap energy
this "price draught period" will divide miners into clean and unclean

only those efficient will survive
in general:expect more centralisation and smaller miners kicked out of the business,sadly

Samarkand

sr. member

Activity: 658

Merit: 282

Quote from: aso118 on September 07, 2018, 10:07:14 PM

... the price seems to have stabilized at around $6,500 now.

I strongly suspect that this is a level that will be a very strong support, because
this is around the breakeven point for many miners. Of course it might go lower
temporarily as miners with big "war chests" try to bankrupt their competitors, but
in the long-term I´d be extremely surprised if the price would actually
go lower than this. The floor might even be higher in the future as the average
cost of mining a single BTC continues to rise.

aso118

legendary

Activity: 1918

Merit: 1012

★Nitrogensports.eu★

Volatility has definitely increased in the last few days, with news about Goldman shelving plans for its crypto desk and subsequent clarifications by Goldman. Predicting price movements by extrapolating just does not work in Bitcoin's case - the price seems to have stabilized at around $6,500 now.

hatshepsut93

legendary

Activity: 3024

Merit: 2148

Again Coindesk with their worthless predictions. It's the same every time the price moves - if it's up, they suggest that it will go even higher, if it's down, they suggest that it will go even lower. Anyone who actively trades Bitcoin should ignore these articles and instead find better tools - learn a proper technical analysis, get into some insider circles, find some people who have proven track record of making accurate price predictions, etc. As for hodlers, they shouldn't care about these tiny movements, they should be watching for fundamental news instead.

cybersofts

copper member

Activity: 658

Merit: 284

For bitcoin, the path of least resistance is to the downside.

At press time, the leading cryptocurrency is trading at $6,340 on Bifinex – down 3 percent from the high of $6,550 hit earlier today. The bulk of that loss came amid a dramatic drop over almost $100 in an hour soon before press time.

The minor recovery from the previous day's low of $6,300 was likely a product of oversold conditions reported by the short duration relative strength index (RSI) yesterday.

More importantly, the fact that the gains were erased so quickly indicates that bearish sentiment is still quite strong and the minor pop has likely recharged engines for further sell-off.

After a period of strengthening bull indicators over the last three weeks, the technical charts have now shifted toward the bears. As a result, a drop to $6,000 (February low) cannot be ruled out

Source: https://www.coindesk.com/6k-ahead-bitcoin-price-drops-after-brief-recovery/

Topic: [2018-09-07] $6K Ahead? Bitcoin Price Plunges After Brief Recovery (Read 194 times)