Home Cryptocurrency Bitcoin Price of Bitcoin fell by almost 1% to 5,288 USD

Price of Bitcoin fell by almost 1% to 5,288 USD

bitcoin

Share This On Social

The price of Bitcoin fell by almost 1% today to 5,288 USD, retreating from the level of 5,300 USD reached on Friday and conquered several times during the weekend. The cryptocurrency market sentiment has recently seemed to begin to experience a bullish shift according to various industry observers. This notion is now receiving even more support from a fresh report suggesting the bear market is indeed waning. In any case, the cryptocurrency market gained more than 3.4% during the week, appreciating by 174 USD.

Most of the Top 20 cryptocurrencies are reporting slight to moderate losses today. Ethereum is down by 3.01% to 168.53 USD, while XRP dropped by 2.95% to 0.32054 USD. A bigger decrease was reported by Bitcoin Cash, EOS and Litecoin, which wiped out between 5.5% and 6.8% from their values.

The total value of the cryptocurrency market fell to 176.549 billion USD.

Bitcoin price analysis

Bitcoin price is showing positive signs above the 5,200 USD pivot level. The cryptocurrency could accelerate higher once it clears the 5,400 USD resistance area in the near term.

This past week, there was a downside extension below the 5,000 USD level in Bitcoin price. The cryptocurrency was traded below the 4,950 USD level before buyers took a stand above the 4,920 USD level. A swing low was formed at 4,922 USD and later the price started consolidating in a range. Finally, there was a fresh increase above the 5,160 USD resistance and the 100 simple moving average (SMA). The price broke the 5,200 USD level and the 50% Fib retracement level of the last slide from the 5,462 USD high to 4,922 USD low.

bitcoin price

The recent upward move was positive and was a close above the 5,200 USD and 5,250 USD levels. However, the price seems to be struggling near the 5,350 USD resistance. There was also no close above the 76.4% Fib retracement level of the last slide from the 5,462 USD high to 4,922 USD low. A successful close above the 5,350 USD level may perhaps open the doors for more upsides above the 5,400 USD and 5,450 USD levels. A break above the last high near 5,462 USD could trigger a strong upward move towards 5,600 USD or 5,800 USD.

On the downside, there is a decent support formed above 5,270 USD. There is also a key ascending channel in place with support at 5,270 USD. If there is a break below the channel support at 5,270 USD, the price could test the 5,160 USD support level and the 100 simple moving average (SMA).

Bitcoin mining is profitable again

The latest rally in Bitcoin has pushed the price of cryptocurrency above the average cost of production.

Bitcoin mining difficulty increased significantly following the formation of the bottom of the asset on December 15, 2018, in the range of 3,100-3,200 USD. This meant that more and more miners were entering the Bitcoin economy, despite the circumstances.

Meanwhile, the approximate cost it mining a Bitcoin is close to being unprofitable was about 3,150 USD. After deducting the devaluation of mining machines, the value went up to 3,850 USD.

Since April 18, 2019, the mining costs varied between 3,550 USD and 4,350 USD against a price of 5,250 USD. Thus, mining provided a profit of 900 USD for each Bitcoin.

The calculated operating costs based on the electricity tariff of 5.5 cents per kWh. So, the point at which it goes to zero can vary. The exact amount is heavily dependent on electricity costs.

At the current price of Bitcoin it can be assumed that miners in China earn more than 2,000 USD for each coin.

Of course, the figures mentioned above could change even with the smallest violation in one of the metrics. Electricity prices are not permanent, but given that more than 80% of the Bitcoin yields in China, the above gains can ensure that the balance of most miners grows.

The Chinese government has recently expressed its plans to ban cryptocurrencies, although the decision has not yet been made. However, relocating miners, which account for more than 90% of the hash-run to manage Bitkine’s blockade, may cause temporary problems. Miners may be forced to look for other regions for their operations, such as Mongolia or Hong Kong, though expensive.