The post 100% Accurate Bitcoin Bottom Signal Hits: Time to Buy? appeared on BitcoinEthereumNews.com.

Este artículo también está disponible en español. Crypto analyst Astronomer, known by the handle @astronomer_zero on X, has put forth a potentially compelling bottom signal for Bitcoin, which hinges on the electricity costs incurred by miners to produce BTC. According to him, this particular metric has historically served as a reliable indicator for identifying optimal buying opportunities within Bitcoin’s price cycles. Is The Bitcoin Bottom In? The analysis titled “BTC Miners electricity cost, a 100% accurate bottom signal,” leverages data to illustrate a scenario where the cost of Bitcoin production dips below its market price, suggesting a pivotal moment for potential investors. Astronomer elaborated on his methodology and findings by referencing his previous predictions which successfully pinpointed market tops, notably a 30% drop from a $70,000 peak, which was guided by similarly data-driven signals. Related Reading Astronomer’s current focus on the cost of mining stems from its significant implications on Bitcoin’s supply dynamics. Despite the halving events designed to reduce the reward for mining Bitcoin, there remains a 0.84% annual inflation in its supply, equating to roughly $10 billion worth of Bitcoin entering the market each year. This is equivalent to the total holdings of significant corporate investors like MicroStrategy, indicating a substantial influx of Bitcoin from miners, who are inclined to sell gradually to sustain their operations. However, the current market conditions, as described by Astronomer, have reached a rare state where the market price of Bitcoin has fallen below the average weighted cost of electricity required to mine it. This situation typically constrains miners from selling their holdings at a profit, thus potentially reducing the sell pressure on the market. “Not only does that mean that the miners can’t sell their BTC for a profit. It also means that it is simply cheaper to just log into a…

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Filed under: News - @ September 5, 2024 4:18 pm