Bitcoin has spent most of the weekend in order to consolidate itself in the middle of 8,000-Dollar-Zone, after he had to experience a week of strong declines through several levels of Support. The Stock-to-Flow model, however, is keeping the course – and that means, that after the halving, large gains could be achieved.
Bitcoin puts up a good fight
Bitcoin has corrected from its peak in the year 2020, around 20% to the yesterday’s low of just over 8,400 thousand dollars. He has kept up for several days, in the middle area of 8,000 dollars, which analysts led to believe that the low point could be reached.
Only 70 days prior to the halving of the Analyst “PlanB revised” now be Stock-to-Flow model and determined that things are on the right track.
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The Stock-to-Flow model to examine the relationship between the production of the proposal and the currently available stock.
Using this model, the Analyst said an increase of about 80,000 to 100,000 dollars in the months following the halving before. In the case of the preceding events in the years 2012 and 2016 in the following years, enormous increases – and many expect that in 2021 for Bitcoin will be even bigger than this year.
There was some criticism of this model, the efficient market hypothesis (EMH) is the best Argument against this model. Essentially, the EMH States that the model is based on publicly available information, and therefore, the analysis and conclusion already priced in must be.
If the EMH is not applicable, then BTC is not achieved after the halving (but not necessarily in front of it) is actually enormous profits.
Trader and Analyst “Anondran” has considered Hash-Ribbons and commented that the costs for Mining will be to the current prices is unprofitable, as soon as the block reward is reduced to half.
$BTC Hash Ribbons ain t looking so good as halving is approaching.Mining cost right now at~ $7700.Bitcoin should rally to over $15000 in the before Halving if miner wants to feed their family.Pump it for the Miners and their family. pic.twitter.com/3ohIlbqfmX— Anondran (@AnondranCrypto) February 29, 2020
It means, that after the halving of a Bitcoin price of $ 15,000 is necessary, so that Mining remains profitable.
Also of Miner-surrender and death spirals, the speech – however, we have seen all that before. During the crypto-winter 2018, the miners made a break, since it no longer was profitable to continue.
If the Hash Rate continues to increase (currently it is close to its peak at 120 EH/s), the BTC price after the halving but remains at the current level, could be the returns for Mining again similarly low as in the past.
The Miner would be forced to pay more for upgraded Hardware, such as the latest S19 Per Antminer from Bitmain, or your assets so long to turn off, until the prices make the operation more profitable.
The next couple of months will be for Bitcoin interesting, what’s more, you could dictate the performance for the next few years.