Understanding why Bitcoin price is supported at USD$6k+

Sep 22, 2018
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#1
To understand how and why btc price has been widely supported at around and above usd$6k range, you have to ask - who has the most btc and will continue to be?

The answer = The btc miners. Not the home miners/hobby miners/small scale miners, but the whales and I'm talking about bitmain and such.

They are the biggest hodlers and dumpers, and will continue to be.

usd$6k range is about there plus some profit for them to continue operating, so the support will always be around 6k range.
 
Sep 22, 2018
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#2
further illustration with a graph:
(while a pro trader from BitMEX Crypto Trader Digest, Arthur Hayes, doubled down on that portentous outlook that btc would end up in usd$2k before picking up)

 
Sep 22, 2018
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#3
Even breaking down further by maths:
(extract from bitcointalk forum OP - franky1)

the math is simple
at current average 50 exahash mining stats (50000000 terahash) thats 3571428 asics(14 tera each)
working out the cost per coin can be done
hardware
even at their second hand sell off of $450/unit=$1,607,142,857.14
which if running for a year before unit replacement = $2452.90 hardware cost per btc(x/26/2016/12.5)
electric
571428*$0.08=$285714.24
$285714.24 an hour = $3819.99 a btc (*24/365 then /26/2016/12.5)
hardware and electric =$6272.89

electric= 0.06cents per kwh =(0.08cents for a ~1.33 kwh equiv)
asic hardware unit=$450
asic hardware hashrate 14 tera hash
asic hardware electric =~1.3kwatt/h


so yeah, all the basics boils down to simple maths.

In fact, I think the whole universe is nothing but numbers and maths (mass of a planet, pull of gravity, blackholes, speed of light, etc. everything and anything can be broken down and calculate by maths)

Am I going nuts? Thinking of numbers all the time??
 

TecScout

Moderator
Staff member
Aug 23, 2018
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#5
This is an interesting theory, but I also think that professional miners are interested in more profit.

Why should they keep that at the limit of 6K if they can do 50k too.

It remains to be seen how the market develops, especially since very few people actually buy cryptos in comparison to the normal stock exchange.
 
Sep 22, 2018
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#6
This is an interesting theory, but I also think that professional miners are interested in more profit.

Why should they keep that at the limit of 6K if they can do 50k too.

It remains to be seen how the market develops, especially since very few people actually buy cryptos in comparison to the normal stock exchange.
Yes, of course. Crypto business is just like any other business. Most of us are in it for profit, whether a whale or just a Plankton.

As to your question, why the whales would want btc price to be at this level - it is quite a tricky question to answer. One of the possibilities are the whales wants the btc price to go through this consolidation phase, so that the price will become stronger and firmer at a later stage (could be 10k, 20k, 50k or even 200k).

Now that we have established the entry price of bitcoin at this range (usd$5800 - usd$6300), the rest is easier.

Simply calculate your risk threshold - the amount you can risk, the length of time you can HODL and the exit point (hopefully profit taking point/or touch-wood cut-loss point), all we had to do is to go in, sit back and enjoy the ride.

Cheers!

*Disclaimer : Above are my personal views, please do not hold me responsible - I'm not your freaking investment trader/adviser.
 
Last edited:
Likes: themonkii

themonkii

Community Manager
Staff member
Jun 14, 2018
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#13
Well there goes the support ..
Yep. Brutal day. I left my PC.

@niklasm Yeah I wonder who dumped that huge number. From $6000+ to just under $5500. I just hope Bitcoin's bull run come soon.
I think it was multiple people. Like anything, people panic sold. BTC had the lowest volatility all year, it was bound to happen - either up, or down. My personal gut feel is that the BCASH drama spilled out with public figures such as Craig Wright Wrong making claims about dumping the price of BTC to fund his attack on ABC.
Regardless, that $6k support is now resistance....thanks BCASH.
 
Aug 30, 2018
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#14
Yep. Brutal day. I left my PC.


I think it was multiple people. Like anything, people panic sold. BTC had the lowest volatility all year, it was bound to happen - either up, or down. My personal gut feel is that the BCASH drama spilled out with public figures such as Craig Wright Wrong making claims about dumping the price of BTC to fund his attack on ABC.
Regardless, that $6k support is now resistance....thanks BCASH.

We all love the BCH saga/drama :( First they didn't like Bitcoin so they splitted, then they didn't like their own bitcoin cash and splitted.. what's next?