For almost 3 months we can see a significant drop in Bitcoin that are sold by miners. So miners decided to keep their mining rewards on a large scale.
Just before the halving the hash rate skyrocketed because of mining farms, that pushed on their rates.
Since the halving we can now see a continuous drop of the hash rate of the Bitcoin network. After the halving some mining farms had to stop their businesses because they weren't profitable any more. Then there was another group that were close to zero profit after the halving but waited for a difficulty adjustment on May 19. But this adjustment wasn't significant enough. As a consequence more miners stopped their businesses, eventually dropping their hoarded BTC onto the market. The price dropped subsequently.
This behavior is well known after a halving and resulted in hash rate and price drops in the past. Good news is that these kind of drops resulted in a large difficulty adjustment that triggered a massive bull run after some difficulty periods.
The ASIC technology is currently changing. A new open source ASIC chip could change market conditions in this space and force miners to invest into new hardware in order to keep their market share. These investments are paid by selling large quantities of Bitcoin, that leads to a price dump. But after installation the hash rate and the overall amount of (profitable) miners increases, which usually leads to a massive accumulation phase.
That's why I expect Bitcoin's price to drop in the next 3-5 weeks. There are some significantly supported trend lines that haven't been pierced during the covid-19 crises but not yet retested on the weekly chart yet.
Targets: 7.000 USD and 5000 USD
I marked the difficulty adjustments in the chart as visual guidance.
Just before the halving the hash rate skyrocketed because of mining farms, that pushed on their rates.
Since the halving we can now see a continuous drop of the hash rate of the Bitcoin network. After the halving some mining farms had to stop their businesses because they weren't profitable any more. Then there was another group that were close to zero profit after the halving but waited for a difficulty adjustment on May 19. But this adjustment wasn't significant enough. As a consequence more miners stopped their businesses, eventually dropping their hoarded BTC onto the market. The price dropped subsequently.
This behavior is well known after a halving and resulted in hash rate and price drops in the past. Good news is that these kind of drops resulted in a large difficulty adjustment that triggered a massive bull run after some difficulty periods.
The ASIC technology is currently changing. A new open source ASIC chip could change market conditions in this space and force miners to invest into new hardware in order to keep their market share. These investments are paid by selling large quantities of Bitcoin, that leads to a price dump. But after installation the hash rate and the overall amount of (profitable) miners increases, which usually leads to a massive accumulation phase.
That's why I expect Bitcoin's price to drop in the next 3-5 weeks. There are some significantly supported trend lines that haven't been pierced during the covid-19 crises but not yet retested on the weekly chart yet.
Targets: 7.000 USD and 5000 USD
I marked the difficulty adjustments in the chart as visual guidance.