Bitcoin is bearish structure in the last few weeks has raised concerns about the future flagship cryptocurrency. Among the challenges are speculations about its condition, some of which point to a lower price of $25,000. However, an analyst of the chain recently went to the social network X to explain why the fall of Bitcoin to $ 25,000 is an unexpected event in its current situation.
The Electricity Price Point Indicates That You Can Get Bitcoin Down
In a June 6 post on X, crypto expert Ted Pillows meaning that the price of Bitcoin may drop significantly before the bear market is established. This idea is based on the example of Bitcoin Electrical Cost.
In his words, the model estimates the cost of producing Bitcoin by measuring the electricity required to mine new BTC. Because mining operations tend to consume a lot of energy, the metric is often used as the source of Bitcoin’s value. This is because it represents the minimum cost at which miners can sustainably operate in the long term.
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In line with history, Pillows explained that Bitcoin bear markets have never fallen below the Electricity Price, despite the challenges seen during this period. In fact, bear markets are often very low near this key price.
Pillows reported that Bitcoin’s current electricity price is around $48,694 – a low point that is still far from Bitcoin’s market value. According to the expert, this shows that the price of BTC can get help around $50,000 if the current decline continues.
However, Pillows also sounded a note of caution in the analysis, saying it would take a rare global event for this support phase to end. If a country is affected by a recession or a serious epidemic like COVID, the price of Bitcoin may drop for a short period of time due to panic selling.
A Quiet Accumulation of BTC On Binance Happens As Outflows Slowly Rise
In the post Quicktake on CryptoQuant, expert CryptoOnchain lighting fixtures An interesting debate going on in the Bitcoin market. According to an expert on the chain, BTC accumulation events have been happening on Binance.
The analyst noted that the technical indicators – in particular, the RSI (14) and the EMA50/200 – tell a clear story. The RSI reading, for example, has fallen sharply near 6.4, and the EMA50/200 is currently showing a “Death Cross”.
At the same time, Binance’s Exchange Netflows are read as negative (-0.58σ), indicating that Bitcoin is leaving Binance on a consistent basis – a phenomenon that also shows that holders are hoarding BTC instead of panic selling. But CryptoOnchain explained that the unknown risk of long squeezes still exists, given the large Open Interest.
At the time of writing, the price of BTC stands at about $602,388, showing about a 3% jump in the last 24 hours.
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Image from iStock, chart from TradingView
