Has Bitcoin Reached Its End or the End of a Downtrend?
Lately, many clues have justified that Bitcoin may probably continue falling. Recent annulments and technical news might urge people react in fear. If we examine the Bitcoin charts, we may perceive that by applying the Elliot wave theory, we could say that we might be in a corrective way after the fall of the 19th December 2017. We might be there for a while, provided that we take into consideration that the corrective wave has not finished yet.
Bitcoin Daily Chart
On the contrary, if we examine the Ichimoku system as well, we may see that we are below the cloud. Our lines Kijun Sen, Tekan Sen and Chikou span, are out of the cloud as well, giving us a probable strong sell sentiment with the future cloud becoming strong with flat areas and shifted downwards, which means that the potential downtrend is still strong.
The Wall Street analyst, Tom Lee’s (Fundstrat agency) carried out a research and pointed out that if the BTC prices dropped below the range of $8K, then it will be difficult for miners to have a profit. He stated that at a global average rate of six cents per kilowatt-hour, miners would just break even in the best case scenario. Based on this research, the mining companies will probably stop mining in the near future, provided that this theory is verified. Moreover, another potential hit for miners could be the decision of the The New York State Public Service Commission (PSC) which states the following “The New York State Public Service Commission today ruled that upstate municipal power authorities could charge higher electricity rates to cryptocurrency companies that require huge amounts of electricity to conduct business. The ruling was needed to level the playing field and prevent local electricity prices for existing residential and business customers from skyrocketing due to the soaring local demand for electricity.”
Finally, the fact that major companies are banning ads related to cryptos constitutes another significant hit for Bitcoin and other cryptos too. Have in mind that cryptos are highly volatile so be careful and always estimate the risk before entering the market.
This article was written by Marios Athinodorou, TeleTrade’s market analyst, and commentator. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here.
This article was originally posted on FX Empire
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