Fundstrat’s Thomas Lee believes that Bitcoin mining is an unprofitable venture at current prices. A model developed by his data science team has pegged the breakeven price at $8,038.
If prices fall further, the miners will start to lose money on their operations. Shone Anstey, co-founder and president of Blockchain Intelligence Group opines that this may force a few miners to stop their operations.
Technical analysts watch the 50-day MA and the 200-day MA closely to forecast the path of least resistance. A death cross, a situation where the short-term moving average falls below the long-term moving average, indicates weakness. Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd believes that if the cross occurs, Bitcoin can sink to $2,800.
It is common to see wild price forecasts on the downside when Bitcoin is falling. We saw similar outrageous forecasts on the upside when the cryptocurrency was rising.
Though we do keep those factors in mind, we should not be worried much by them. Let’s see what our analysis forecasts.
Bitcoin fell to $8,066.61 levels on March 15. The bulls are trying to defend the $8,000 levels and pullback towards the $9,500 levels.
The BTC/USD pair remains in a downtrend as prices are trading inside the descending channel and below both moving averages. The 20-day EMA has broken below the 50-day SMA, which is another bearish move.
If prices fail to sustain above the overhead resistance zone of $9,500 to $10,000, the cryptocurrency can fall to $7,850 and after that to the February 06 lows of $6,075.04.
Our bearish view will be invalidated if the bulls manage to sustain above the $10,000 levels.