The critical level of the rate for Bitcoin is $3000. At this price the owners of most models of the miners will cease to make a profit, and they, like investors, need to consider replacement options in case that scenario comes to fruition.
An appropriate assessment was voiced by the Chairman of the Board BitKan Leon Liu:
“I think the level of prices in 20 thousand yuan (about $3,000) — this is the level at which all the miners will cease to be profitable, he said. Miners, as investors, need to start working on your strategy, in case this would happen.”
This statement is remarkable not only because it comes from a market participant who tries to be heard. BitKan, which became known as the Chinese platform for OTC trades, is now positioning itself as a provider of related trading data and services. However, one of its investors is the largest manufacturer of miners Bitmain, so it concern about the future owners of the miners may have a fairly simple explanation.
Close to Bitmain can also be attributed to the fact that according to Lew, hardwork Bitcoin Cash, and the subsequent events in which the direct participation of the founder and CEO of Bitmain Jihan Wu, did not play a special role in the fall of the Bitcoin exchange rate and all stock market. That is, this factor certainly affected, but was not the main and not the only one, he says.
“The current downturn at the end of last year, and it will continue for at least 12 months”, — said the founder BitKan.
In his opinion, the previous rally, which ended in December 2017, was largely due to the boom of the ICO. Now, however, it became clear that “99.9% of the projects ICO failed”, and the bubble burst.
So the market has entered a stage of decline, with minor fluctuations in prices in one direction or another. According to Liu, the market needs an effect similar to the effect of ICO at the time, that is dramatic and positive changes or events that will bring him out of hibernation and interrupt this trend.
This forecast is basically the same as that recently voiced by a former banker, economist and trader, Alex Krueger, who pointed to the generality of Bitcoin with the category of commodities, that is, exchange traded commodities such as oil or metals.
In his opinion, the demand for Bitcoin can grow at the expense of large-scale and positive market events, such as the approval of the Commission on securities and stock exchanges of the Bitcoin ETF. Or it could be an event, which is still hidden over the horizon.
“The more unexpected will be a shock, the stronger will be its effect,” notes Kruger.
Also recall that the bottom price of $3000 seems a remote possibility after Bitcoin tested $3600. According to SEO Genesis Trading Michael Moreau, that $3000 is a threshold, which may push Bitcoin.
“Until we reach $3000 or so, you can not say that this is the bottom” — says the trader.