- Bitcoin (BTC) Has Found a New Bottom
- Bitcoin’s Relative Strength Index Appears to be in the Oversold Zone
- The Profitability of Bitcoin Mining Approaches Yearly Low
Bitcoin News Today – The price of Bitcoin (BTC) is gradually recovering higher and it has continued to fend off the $7,800 support level for some weeks now. Bitcoin (BTC) just broke over the $8,200 mark. However, there are several indicators suggesting that the digital currency is likely to reverse in the near-term.
Bitcoin (BTC) Has Found a New Bottom
Bitcoin seems to have found a new support level at the time being. Bitcoin has repeatedly rejected support both on the weekly and daily charts this past week. After Bitcoin tested a high of $8,400 on October 14, the digital currency bounced off the Bollinger Bands indicator’s support five out of seven days, with the present support at the $7,860 mark.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin price has been at the bottom half of the Bollinger Bands this past week. This has brought down the resistance on the Bitcoin daily chart to just $8,550 and the moving average is down to $8,120. Bitcoin needs to maintain the $8,120 level to break out of its current downward trend. In addition, a break over the $8,550 mark would pave the way for more gains towards the next resistance.
Bitcoin’s Relative Strength Index Appears to be in the Oversold Zone
Bitcoin’s weekly Relative Strength Index is not showing much. Nevertheless, the daily Relative Strength Index is showing that BTC might be ready for a bullish reversal after it bottomed on October 19 and has started recovering. It might be too early for crypto buffs to be cheering. However, Jason Williams – the co-founder of Morgan Creek Digital – recently released a bullish tweet about scarcity and Stock-to-Flow. Williams said:
“The model predicts a Bitcoin market value of $1 trillion after the next Bitcoin halving in May next year, which translates in a Bitcoin price of $55,000 – PlanB.”
The Profitability of Bitcoin Mining Approaches Yearly Low
The prospect of a potential price reversal would be welcomed by BTC miners. The profitability of Bitcoin mining has been very low, and it is at levels last seen since BTC was trading around $3,500 in February this year. As Bitcoin (BTC) approaches breakeven prices for miners, they have the incentive to hold on to their inventory to reduce market sell pressure. At the current BTC price, only miners paying less than $0.1 per kWh can mine the digital currency without bearing a loss. Even at 0.055c per kWh, the price of Bitcoin (BTC) would need to remain over the $6,500 mark to avoid mining at a loss.
All these are pointers that the price of the digital currency is likely to reverse in the short-term. However, the long-term prediction for Bitcoin looks pretty bullish and it might amount to something great after the halving next year.