16 Aug, 2020

Analyst: Bitcoin Miners Will Defend Price Above $6,500 Ahead of Halving

Bitcoin miners (BTC) want to co-ordinate the market to maximize their earnings as the remuneration of the 2020 block is halved.

Is the mine controlling the market?
This was the conclusion of a new Bitcoin price analysis by popular trader Filb Filb as BTC / USD reached $ 9,000 on July 17th.

The biggest cryptocurrency move saw significant downward pressure this week after a volatile period, with analysts remaining opposed to market players.

Filb Filb, however, does not imagine that Bitcoin will see new low levels this year, as the miners want to optimize their profitability as much as possible. They, he said, are firmly in control.

“As Satoshi himself stated, he rightly pointed out that commodity costs are likely to cause production costs. Why? Because the miners will sell on demand where revenue per unit> unit cost. Similarly, they are collectively discouraged from selling when revenue <cost, “summarizes in the analysis.

Silver mining investment
According to Filb Filb, the medium-term actions are most likely to come from Bitcoin miners selling their mined coins, which can be seen in BTC’s 12.5 sales orders (that is, the current mining bonus of 20, per 20 blocks). reduced to 6.25 BTC).

They then compensate for future production, while the existing marginal cost of production remains low, he explains.

“I said all year in the bear market for these 12.5 BTC orders,” he says, “They disappeared into the bull market this year and returned to 13K.”

Filb Filb believes that the miners may have outsourced half of their sales to create a new half bubble, which will lack supply and the opportunity to maximize unit revenue. They will then defend the new production cost or double the previous cost at the $ 6,500 Bitcoin price level. Notes:

“6.5K you won’t spend for miners.”

As Cointelegraph mentioned, Bitcoin metallurgy was transformed in 2019, with lower profits giving way to better-than-expected results across the industry and widespread plans to open new sites.

Low levels and a lack of profitability in the mining industry, Filb Filb added, have hit weak players, while in recent weeks, the difficulty of mining has hit highs, underscoring renewed market competition and increasing the computational power of the Bitco network.