Bitcoin Mining Faces Price Squeeze

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

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Declining Mining Profitability: JPMorgan's analysis reveals that the sensitivity coefficient of mining difficulty to Bitcoin price fluctuations has risen to 0.62 over the past six months, indicating severe impacts on profitability, with 20% of miners currently operating at a financial loss.
Production Cost vs. Market Price Gap: The average production cost for Bitcoin mining is $78,000, while the current market price is only $64,700, trailing below production costs for five consecutive months, forcing miners to sell Bitcoin to sustain operations amid financial strain.
Hash Rate and Mining Difficulty Adjustments: The Bitcoin network experiences a decrease in hash rate and mining difficulty when prices dip, with a notable 10% decline in mining difficulty observed in the second week of June, highlighting the network's increasing sensitivity to price shifts as miners shut down inefficient operations.
Diversification Trend: In response to financial pressures, publicly listed mining companies have offloaded over 32,000 BTC in the first three months, while also diversifying into sectors like artificial intelligence and high-performance computing, despite the significant upfront capital and operational risks involved.

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Technical Analysis for BTC

Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 4 indicators are flashing buy, while 3 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Bitcoin (BTC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	57099.752	59685.911	62119.832	64705.991	67139.912	69726.071	72159.992
Fibonacci	59685.911	61603.582	62788.32	64705.991	66623.662	67808.4	69726.071

About BTC

Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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