It looks like bitcoin will have a very strong dip and be back under 1k. My prediction is telling me it will fall to around the 500 dollar range within a month.
That can't be possible except the whole crypto currency is about to collapse. It cost around $5000 to mine 1 btc. Say the price will go to $500 it's technically and fundamentally not a possibility.
i am not going to argue about whether 500-700 is possible or not with you. But your comment about crypto collapsing because it costs 5k to mine a btc just displays a fundamental lack of understanding.( not make an attack against you want to help clear things up)
You see the cost to mine a btc is not fixed to a USD value. It is dependent on how many miners are actively competing with each other (through their hash power) to try and find a block.
In times of a bull run when the price of btc increases exponentially, the profitability of mining also increases, as aresult you have a lot of new enterants in the space setting up rigs and farms, all this to say that the increased competition and more hash power being used to find a block means that a difficulty adjustment takes place(every 2016 blocks) and the end result of this is that the cost to mine a Bitcoin eventually goes up. this increased mining cost however is not fixed in stone. People have been mining btc all the way back to a few cents.
Now lets examine the bear market scenario. In this case as the price keeps on dropping miners would eventually find that profit margins are now rapidly decreasing, as the price now slowly approaches their mining cost.
This happens because the difficulty of mining is still the same owing to the last difficulty adjustment upwards. As a result of this lower profitability many of the smaller miners or less efficient miners (who do not benefit from economies of scale/or are mining in countries that have higher power costs) will now probably have to shut down their operations completely because they suddenly find them selves losing a large chunk of money.
Now this eventually would mean lower hash power is being used to mine blocks and a smaller number of miners( only the large ones) are now still actively trying to find blocks. This lower overall hash power and competitiveness would eventually trigger another difficulty adjustment downwards, thereby reducing the costs associated with mining a bitcoin.
So while it may cost 5000$ to mine a btc today, it could easily cost only 3000$ after the next difficulty adjustment, and maybe even go back to 500-800$ after that one and so on and so on.
Again that's not to say that this will mean cryptos will collapse if this happens and technically and fundamentally this is a perfectly acceptable scenario.
