If you have chosen to follow the path of becoming a trader, it is imperative to know how to separate between market trends and emotions of participants.
Panic psychology will easily lead to a sell-off action
CryptoBirb emphasized that those who always keep in mind the mantra “Bitcoin is dead and will never recover” is not only surrounded by extreme fear but also can not evaluate the real value of King coin in future.
$ btc is dead, will never recover narrative is easily told by extreme fear sentiment. Nothing bullish about breaking trendline, while investors monitor trends (directional movements) over trendlines. Trends may include deviations. Next weeks will define the future for all of us👀 pic.twitter.com/BNWHhXUqKa
– Crypto₿irb (@crypto_birb) March 17, 2020
“BTC is dead, will never recover is the frequently repeated sentence of those who have extreme fear psychology. There are no signs of a price increase that could break the trend line, while investors track the trend (directional movement) above the trend lines. Trends can also be skewed. Next week will determine the future for all of us. ”
In order to prove his position, the trader cited the index of greed and fear often used to analyze market sentiment. Over the past few days, the index has plummeted below 5 points out of a total of 100, which means ‘extremely scared’. A month ago, the mentality was ‘neutral’ with 49 out of 100 points.
Bitcoin bulls are not scared
Besides, CryptoBirb admits the Bitcoin price chart looks very down because it broke below the trend line. This can scare investors because they are very careful people with long-term trends in price action.
However, cows do not accept to give up. CryptoBirb believes we should wait a bit because next week will determine the future for all.
This advice may be the smartest for the majority of market participants. A period of high volatility may not be the best time to jump into the spot market, let alone derivatives or margin trading.
Bitcoin hashrate plummeted when the miner showed signs of surrender
Although the cost of mining 1 BTC varies by region based on the price of electricity, the recent sell-off made most miners unable to continue operating normally.
As a result, more and more miners turn off their rigs.
The on-chain analysis platform Glassnode talked about unprofitable mining in a recent tweet and also explained that the precarious Bitcoin price situation has caused the hashrate to decline rapidly and continuously.
Due to the declining $ BTC price, it is now unprofitable for many miners to continue their operations.
Since its peak on March 7th, the 7DMA of #Bitcoin‘S hashrate has fallen by ~ 16% – with hashing power disappearing even faster after the drop to $ 5k.https://t.co/5bnFHpTXfX pic.twitter.com/X9uw8hOCgD
– glassnode (@glassnode) March 18, 2020
“Because the price of BTC is down, miners who continue to operate at the moment are not profitable. Since peaking on March 7, 7DMA's hashrate Bitcoin has dropped ~ 16% – with hash power disappearing even faster after falling to $ 5K. ”
What does this mean for BTC price?
Miner gives Bitcoin steady and constant selling pressure. They need to sell mining coins to cover operational costs.
However, when the BTC price is lower than the production cost, miners usually only sell the minimum required to support their operations, reducing some of the selling pressure on leading cryptocurrencies.
Accordingly, buyers are motivated and easily reduced selling pressure, while encouraging miners to continue accumulating as much BTC as possible to sell later and profit.
Although Bitcoin may fall further from its current price, it cannot be traded forever at a low level for a long time, as the reduced number of coins miners sell will give bulls a more positive incentive.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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