History suggests Bitcoin could hit new high above $85k to cover mining costs
The post History suggests Bitcoin could hit new high above $85k to cover mining costs appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) miners have recently found themselves at the center of the crypto market due to the increasing selling pressure on their BTC holdings and the resulting impact on the asset’s price. Notably, the selling activity has been considered a significant factor that derailed Bitcoin’s trajectory toward claiming the $70,000 resistance. Looking ahead, data shared by crypto analyst Ali Martinez on June 15 suggests that miners still have a crucial role in dictating Bitcoin’s price and potentially spurring it to an all-time high. According to Martinez, Bitcoin’s average mining cost is currently $86,668. Historically, Bitcoin has consistently surged above this crucial level, providing a strong bullish indicator for the cryptocurrency. “Bitcoin’s average mining cost is currently at $86,668. And guess what? Historically, $BTC always surges above its average mining cost,” he said. Bitcoin mining cost chart. Source: MacroMicro Historical impact of mining cost on BTC price The expert shared a chart sourced from MacroMicro, providing a detailed visualization of Bitcoin’s average mining costs, its market price, and the ratio between these two metrics over time. Notably, Bitcoin’s average mining costs and price have generally moved in tandem, with Bitcoin valuation often exceeding mining costs, particularly during bullish phases. For instance, from mid-2016 to early 2018, Bitcoin’s price increased significantly above mining costs. Similar patterns are observable in the periods leading up to 2021 and mid-2023. At the same time, the average mining costs to Bitcoin’s price ratio smoothed over a 30-day moving average (MA). They showed a cyclical pattern, with dips corresponding to periods when Bitcoin prices far outstrip mining costs. Historically, these dips have often preceded further price surges, reinforcing that mining costs are a critical support level for Bitcoin’s market price. With Bitcoin’s average mining cost at $86,668, the current market scenario suggests that BTC must aim for…
Filed under: News - @ June 16, 2024 4:18 pm