Home Cryptocurrency Bitcoin Bitcoin price sank by more than 6%

Bitcoin price sank by more than 6%

Bitcoin price sank by more than 6%, losing the previously reached threshold on 4,000-4,100 USD.

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Bitcoin price sank by more than 6%, losing the previously reached threshold on 4,000-4,100 USD. As expected buyer appeared, when the cryptocurrency approached the level of 4,200 USD, falling by 6.6%. Currently, the Bitcoin is traded at a level of 3,838 USD.

bitcoin price

Other cryptocurrencies also are trading on red with Ethereum wiping out 10%, Ripple depreciating by 7.5% and EOS decreasing by 11.5%. The Litecoin and Bitcoin Cash also registered loses of more than 10% during the session.

The total market value of cryptocurrencies, which earlier was on uptrend, again fell to 129.21 billion USD.

Bitcoin analysis

Last week, there were a lot of bullish movements over 3,600 USD in the price of Bitcoin. The cryptocurrency climbed above resistance levels of 3,800 USD and 3,900 USD.

However, sellers appeared close to resistance levels of 3,950 USD and 4,000 USD. As a result, there were several bearish moves, but the 3,800 USD support area acted as a solid buy-in area. Finally, buyers dominated and raised the price above the resistance levels of 3,950 USD and 4,000 USD.

More importantly, there was a break above the base triangle with a resistance of around 3,950 USD. It was found above the 4,000 USD level and the 100-hour simple moving average.

The upward move supported Bitcoin to climb to 2019 peak of over 4,100 USD. The cryptocurrency was traded close to 4,200 USD, and the peak was reached at 4,191 USD. The initial support is the 23.6% Fibo rate on the last increase from 3,871 USD to 4,191 USD.

JPMorgan Chase evaluate fair value of Bitcoin price at 2,400 USD

The US investment bank JPMorgan Chase has released in January a “Bitcoin and Cryptocurrencies 2019: Acceptance, Performance and Challenges” report that sets Bitcoin’s fair value at 2,400 USD.

The bank’s assessment is based on the marginal cost of extracting Bitcoin from low-cost miners in China.

According to the report, JPMorgan has announced that the fair value of Bitcoin is 2,400 USD, which is 39.76% less than the current market price of the digital asset. The cryptocurrency, which is currently trading around 4,000 USD, is influenced by low-cost miners in China, according to JPMorgan.

“At the average of hash in the fourth quarter of 2018 and on the background of the recent production shares, we estimate that the average cost of cash for low-cost Chinese miners is about 2,400 USD”, says the report of JPMorgan Chase.

The US investment bank also stressed that the estimated fair value is based on the marginal cost of producing Bitcoin by miners. In this case, the marginal cost is the increase or decrease of the total costs of producing one Bitcoin.

On the other hand, crypto miners did not quickly agree with the investment bank. They are of the opinion that there can be no marginal cost when it comes to a Bitcoin, and the fair value is wrong. The latter is due to the fact that there will always be a limited supply of Bitcoin, given that there is a daily offer of 1,800 coins.

Ben Gagnon, a co-founder of the crypto mining company LuTech, revealed that lately, the amount of Bitcoin that can be produced is fixed given that 12.5 Bitcoin are rewarded every 10 minutes. In addition, a miner must earn a larger share of this flat rate in relation to other competitors.