The reason why bitcoin will never *stay* below 5000$ again. PROVE ME WRONG

[MADUWAN]

Most of the time it wont go under 5000$ and some are very sure about that and they even invest there life savings on bitcoin so this is the last chance to gain what most have lost but not to abandon the market or you wont get anything. Bitcoin price seems to fail and that is due to media, governments and other financial reasons that we have today and among them government restrictions and media news are main reasons why bitcoin price started to fall recently but now countries are changing there view about crypto assets and instead of thinking they are too bad for the economy major governments are finding ways to deal with them to make profits in in many ways

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[euronine897]

Bitcoin market will recover soon and it will show most panic sellers and who made negative predictions that they are wrong . Due to bitcoin price drop even top cryptocurrency investors got panicked and sold for a lower price and in that time countries like USA, India kept fueling the situation ignoring the bad effect on investors and benefits that the country could have gained by using it and for the positive side significant businesses in various areas trying to implement Bitcoin with there core business processes because tech experts know digital currency is something extraordinary when compared to fiat paper currencies so doesn't matter what the world thinks now the future will definitely welcome bitcoin with open hand

[Sandus_Cryptolover]

Current Market cap is 120b $ (actually real market cap much lower than that due to lost btc and so on); that could be 1000 people with 120m$ hidden. Anyone who has approximately that amount of btc would be very able to buy the market would it temporarily drop significantly below 5000$ per btc, due to the very limited (and shrinking) actual supply of bitcoin and availability in the exchanges.

There's these school of thought I believe in, it says "In Cryptocurrency everything is possible" it has been proven to be true every time it's been put to test.

Example, you wrote this post August 06 and today is September 15. Since then bitcoin has lost nearly $7billion dropping market cap to ~$113Billion. Hope you know this market cap can also drop to ~$87billion at anytime and if that happens bitcoin will drop to around ~$5000 not saying this will happen but it's a probability.

You are exactly right on the part that in cryptocurrency anything is very possible. The price of Bitcoin could go below 5000$ and can as well stay ahead 6000$. And investors should not be carried away by investing all their hard earn cash, kindly use your investment strategy.

[ExceedBlue012]

Really appreciate you thought and also it is a very informative article and I want to add just one thing bitcoin has its own standard limit and it will never cross that.

[squatter]

now here is why bitcoin wont go down
acquisition costs
1. mining. right now miners have to buy equipment and pay electric to acquire fresh coins. the cost of this is, based on this months LOW hashrate of 42exa(5th sept) =$5670.. only the mining pool that mined coins at 42exa's block would sell their coins for $5670 to just break even. no mining pool will sell their coins at a loss so the other coins they mine this month at higher hashrates would have a higher cost average.

Why wouldn't miners sell at a loss? Lots of investors sell at a loss, eventually, once the pain of being underwater gets bad enough. I remember reading about mining operations back in 2014 whose operational costs were heavily leveraged. They were forced to liquidate everything because of the bear market.

I've also heard of miners (and recently too) who had much lower costs than that.

2. trading. since november 2017 and retested end of june 2018. no trader has sold below $5800. there has been 10 months of oppertunity for anyone who is happy to sell below $5800 to actually sell below $5800... no one has.

The $5,800 bottom came only a couple months ago. Give it time.

3. looking at the UTXO data over 65% of coins have moved/changed hands since the $5,800 price point. and they have not sold below $5800. the other 35% are older coins. which some say could be lost keys, held in trust/for retirement. locked in bankrupcy legal blackholes(mtgox). so in short 2 thirds of the community dont want to sell for less because they have ben active enough to show they had oppertunity. but have not sold when they had the chance

Past performance doesn't guarantee future performance. If there has been sufficient demand to keep price above $5,800 it doesn't logically follow that there is no one willing to sell below $5,800. If the demand decreases, sellers could push price further down.

Anyway, I'll continue to hold my coins. I'm just playing devil's advocate and pointing out that this is all speculation.

[tee-rex]

The only reason of not dropping price below 5000 usd is that mining won't be profitable.

That's not the "only" reason, but a very strong one. The reason #1 is the one I posted.

This is a very weak argument really. No one gives a fuck about mining costs, let alone there being a single cost of mining in the first place. If anything, whatever bitcoin price might be (5k or 1k), there will always be enough miners as mining will always stay profitable at any price. If mining is no longer profitable for some miners, they just leave while the rest picks up the slack instantly taking their share of the reward pie (as the reward remains the same). No offense intended, but honestly, when people bring up this argument about costs of mining, you can be certain that they don't have a clue about how everything works regarding prices, costs, and other economic matters.

As to your claim in the OP, anyone with enough bitcoins (like the mtgox dude) can crash the price to 1k or even below and keep it there as long as he sees fit. There is no reason to prove you wrong as it is just a matter of someone with deep enough pockets, for example, Satoshi and his likes, choosing to dump enough coins. There is nothing to prove here.

No - it is important because people who are heavily involved in mining who happens to have a considerable wealth, will always try to manipulate the price above their profitability rate.
Manipulating up a 100B$ market is easier than manipulating it down.

Simple as that, if you disagree read again because it's a very simple concept.

I'm not going to argue over this point any further as only time will tell and only time can actually prove or disprove your point. Just in case, I hope you are right. However, how much are you going to stake personally that bitcoin won't drop below 5k? Also, explain what you mean by staying below 5k? Are you deliberately playing on words here as staying below 5k is not the same as temporarily dropping below that level? Staying means a certain amount or length of time, so how much exactly, 1 day, 1 week, 1 month, in a row or occasionally?

[IamKnowledge]

There market will get better with time but it will it is not to predict how things will go. However, I do not think that bitcoin will fall below 5000 dollars

[Teriyanone]

Bitcoin good days are coming and it will never get low in the future but the price will increase more and I know a tragedy happened for Bitcoin holders and investors in last couple of months when Bitcoin price went down most people thought that this is a great and rare chance to invest thinking that the price would double in no time but Bitcoin price decreased further for many political and financial reasons and all dreams were destroyed instantly but I think we can still hope for the best in the future even most investors have faced many losses recently many experts idea is that Bitcoin will be fine due to the high demand it is gaining from major industries and price of bitcoin will increase by time   

[tee-rex]

now here is why bitcoin wont go down
acquisition costs
1. mining. right now miners have to buy equipment and pay electric to acquire fresh coins. the cost of this is, based on this months LOW hashrate of 42exa(5th sept) =$5670.. only the mining pool that mined coins at 42exa's block would sell their coins for $5670 to just break even. no mining pool will sell their coins at a loss so the other coins they mine this month at higher hashrates would have a higher cost average.

Why wouldn't miners sell at a loss? Lots of investors sell at a loss, eventually, once the pain of being underwater gets bad enough. I remember reading about mining operations back in 2014 whose operational costs were heavily leveraged. They were forced to liquidate everything because of the bear market.

Some people are hard to explain even the simplest of things. They are like living in their own universe, with its own laws, which is to say, their laws. Miners are not only going to sell at a loss as they don't have a lot of choice having to pay their bills in fiat, they will in fact be mining at a loss. Many miners in the past had been mining at a loss for some time expecting future price growth just like any other producer out there does when the prices plunge for some reason.

Yes, I also remember a story about some Scandinavian miner (name is welcome) who had to stop their operation and sell out because they couldn't keep up with the competition from the Chinese miners, with their cheap electricity (likely subsidized by the local government) and early access to most advanced miners. Bitmain, anyone?

[ninobtcx]

Looks like I was right.. now look what will happen to Bitcoin price....

[coinwizard_]

I would say this is correct, the bottom appears to be around 6200 so this stagnant market will probably fluctuate between there and 7k for a while, at least until the bull run begins

[mekie]

Bitcoin today is about 5% higher than it was the same time last year. Whilst there have been wild swings in its price it has shown resilience and never dropped below $5k which is why it is very unlikely to drop below $5k again, in fact I doubt it will drop below $6k again. My prediction for what its worth is that one year from now it will be at $8k with some very large movements in December and January.

[Isiaka208]

The market is still not predictable if it was, we should be close to 50,000$ by now as predicted by those who know Technical analysis so much. Its good to be bullish but dont ignore reality. 

[kotajikikox]

That's sign bitcoin are still strong, i agree it's possible bitcoin give better increase before end of this year, but i don't expect well because many expert are failed to predict about bitcoin movement in year current year, better to wait what will happen for bitcoin before end of this year.

[florianuhlemann]

This market has fast dynamics. And we can not say what will happen tomorrow or next month. But I think that large investors will make every effort to stay in profit.

[messito]

I support the author and also believe that Bitcoin will not be long below even 6k dollars so you can safely buy it at the current price

[Bizard]

Everything can be impossible to say for sure that Bitcoin cannot fail to ask for up to five thousand dollars, since there is a lot of manipulation on the market and this is not very good for Bitcoin, many still think that it is just a soap bubble results.

[Zalaster]

Perhaps you are right, but I am inclined to believe that if someone wants to drop bitcoin below, he will certainly achieve it. It is enough to convince large investors that Bitcoin is not suitable as an investment, and it will lose value. For example, if a blochain finds a vulnerability. The value that we see today, in my opinion, is true, and it will not differ dramatically over time.

[nightfury]

I think what we witnessed in last december will happen again and at a greater extent. Don't ask me when, but that's a given.

Since i am not a crypto expert who can provide technical analysis regarding about the repetition of last year's inflation rates of cryptos, then i can't also tell when it will comes back again. As a believe, i am just confident that it will going to happen again in the future.

[ansarose1]

maybe you are right buddy. I also think that bitcoin is not gonna go down below 5000$ since it is the most volume coin in the market, as for market situation now, bitcoin is gonna take an increawe for the remaining months on this year. In fact, every bitcoin holder hopes that it will rise to its very peak high price just like on december of 2017.