Is This Why Bitcoin Suddenly Rebounded Yesterday?

[ChrisPop]

Do you mind pasting the Forbes article? I don't think that the mining price is only that - some friend said that it is currently around $9k for chinese miners. However I wouldn't attribute price rises to miners, but to the imbalance between buyers and sellers.

[1714023115]

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[adzino]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

Like how are you linking the cost of mining with the price if bitcoin? I don't see any relation over here. Just because the average cost of mining is $6,300, the price jumped above $7,300? This makes no sense at all. Its like you are trying to say that the higher the cost of mining will be, the higher the price is going to be. I don't think this is how the market actually works. The mining cost doesn't really affect the price of the coins.

[target]

Price spikes because traders realized its over sold so they quickly buy at a low price thinking they're getting in for cheaper price. Holder who panicked now has to buy at higher price, that's a sanction for trying to join the manipulation of the market.

If in days the price will once again dip, the weak hands will just get out to save their money. I guess they are too impatient to wait for months before price favors them so they are going to get out. Their sell order will be picked by those who wants to invest more that will lead to sudden price spike again.

[killerfrost]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

According to the miners' calculations, the average cost of mining 1 Bitcoin ranges from 4500-5000$ so the price could even drop further than 6400$. The previous day's recovery was for no reason true, but it is likely that Bitcoin has hit a hard support at 6400$ and thus its price has quickly come back up in a matter of hours.

[jsizar]

Almost after every drop people are trying to find reason of this drop.
The truth is simple. Nobody will now real reason. Crypto market is very chaotic

[Oceat]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

According to the miners' calculations, the average cost of mining 1 Bitcoin ranges from 4500-5000$ so the price could even drop further than 6400$. The previous day's recovery was for no reason true, but it is likely that Bitcoin has hit a hard support at 6400$ and thus its price has quickly come back up in a matter of hours.

I think someone really need an explanation to everything that's going to happen in Bitcoin even if this is just a quick bounce. I think someone is not too familiar with the bounces that usually occurs in Bitcoin when it is almost breaking down the support. The cost of mining has nothing to do with this bounce, it just so happens that there are traders.

[Aikidoka]

when prices go down I'm sure there will be a rebound in prices, because when bitcoin reaches their support people will automatically buy it and create price reflections. and I think the price reflection some time ago provided quite a lot of advantages especially for those who took place at that time

Yeah, it seems that after bitcoin price get crushed and decrease to 6700$, a lot of people tried to buy more bitcoin to support it and make it increase and that's why the price is renounced again to the 7200$ in just few days.

[darkangel11]

Maybe you're talking about the average cost of mining because in China it's easily below 6k. I once read an article, maybe a month ago, that said Chinese miners would need the price to go below 5000 USD to start capitulating, while in the US the ultimate level is 6500. Of course this would not have to be a spike. to liquidate a farm you need the price to be at a certain level for at least a couple weeks. It's not like these people can't go to a -5% loss for a few weeks, or even months. The workforce needed to shut down a big farm will cost more than 5% of their monthly profit, so they will be reluctant to push the button.

Don't be naive that mining price will stop a bear market. In 2016 it did not and the price went way below mining profitability for months.

[Palider]

Do you mind pasting the Forbes article? I don't think that the mining price is only that - some friend said that it is currently around $9k for chinese miners. However I wouldn't attribute price rises to miners, but to the imbalance between buyers and sellers.

I think this is the link of the article.
https://www.google.com/amp/s/www.forbes.com/sites/billybambrough/2019/12/19/is-this-why-bitcoin-suddenly-rebounded-yesterday/amp/

And from what i understand,  bitcoin won't fall in 6,300$ so that some investor buy back again bitcoin because they read this article. 

[Mike Mayor]

I just gave up worrying about the price and trying to keep up. You never will. You will never know what caused any of this, only speculate after the fact which means you get nothing out and waste your time. If people really knew these things they would be rich. However, I do think you can play on peoples emotions sometimes. Those are normally hit and miss though. Just try to earn as many coins as you can right now before they go up lots and lots in the future.

[DreamStage]

I it will always be worth for miners as transactions can not be done without them.

You need addresses to keep transactions active on the network. They also define their own price including exchangers that use their services.

It makes no sense at all of you comparing Bitcoin's price volatility with miners costs. It's not linked to each other.

What's linked is the amount of effort miners take to generate a new block.

[jets567]

There are lot of factors that can affect the price surge of Bitcoin like some whales trying to acquire more Bitcoin or there are new investors that take the dump as an opportunity so its not just about the mining cost. Remember that the Bitcoin halving is coming so I'm guessing that a lot of things will happen and Bitcoin will become more volatile until the halving.

[YuginKadoya]

Positive news and Demand over Bitcoin was likely why the price increase happens but I don't have any idea why a sudden change with the price now, and it is not unlikely because of the cost of some mining that it may increase that much, another point Bitcoin will still increase this much because it is volatile and it is not new for it to take a leap like this because of the upcoming year-end and it is predicted that the price will surely return back to $7000 USD so it is not surprising to really return in this price mark.

[joelsamuya]

Why do we have the habit of always finding anything to blame (in case of a dump) and to appreciate (in case of a pump) whenever there is a significant movement in the price of Bitcoin? Plain and simple, this is all about the existing supply and demand thing, nothing more nothing less. As to what spurred the demand, that can be a subject of many debates. Anyway, it is still good to see people and the media talking about Bitcoin and the many things happening affecting the whole ecosystem, that can mean that Bitcoin after all these years is still very relevant.

[Pearls Before Swine]

No, that isn't why.  Bitcoin miners don't need a news report to tell them whether mining is profitable or not.  They're not stupid, you know.

The market rebounded just a little, by the way.  I don't have any clue why it happened, just like I have no idea why bitcoin had crashed to around $6600 before coming back to life.  That just happens in the market, because bitcoin is one of the most volatile things you'll ever see.  Most of the time there's no news whatsoever that would account for any particular movement.

Why do we have the habit of always finding anything to blame (in case of a dump) and to appreciate (in case of a pump) whenever there is a significant movement in the price of Bitcoin?

I wonder the same thing, and I've long since stopped trying to find explanations for every little movement.  Things just happen.  Supply and demand, as you said.

[drachman]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

That is not the reason, the price needed for the miners to be profitable has no effect at all in the price of bitcoin, why should it? Do you think that traders or investors care about the profitability of miners? They only care about their own profitability and the price recovered simply because they saw a big opportunity to buy bitcoin for a cheap price and they took it, that is it, any miner that at some point stops being profitable has two choices to keep mining or to stop but whatever they choose the market most likely will not react to it.

[Reatim]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

everything that has positive mean can be the reason of Bitcoin Pumping because we are at bearish market as we can see Bitcoin price is trying to stay in $7k level and that brings burden to the investors that who's looking for some profit this December before the end of the year and also before we enter the halving season next year.and let us hope that at least before we say goodbye this 2019 market goes 9k$ .

[Murat]

Is it really? I don't think so, last 2/1 days, I have seen a lot of people are talking about this issue, I think there is no relationship between these two events, Mining cost is not responsible to get high the price of Bitcoin in recent time, I think Hashrate is the most responsive to this price up and down, It's a common scenario that when the price goes up then the hash rate also goes up and similarly when the price goes down then Hash rate also goes down, That is why Mining cost is not the vital factor to this issue, the most important thing is that Bitcoin price is being manipulated by something.

[pooya87]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300.

what you have to realize is that it is a "guess" of "average" cost of mining.
there are two things wrong in this number. first is that it is purely a guess because there is no way you can find the cost of mining since there are dozens of different factors involved from cost of electricity to labor cost, maintenance and access to new equipment. so if we assume the cost is 1000 then it is the average of from 100 to 3000 (just an example to show the range).
and that means the number is a pure guess and completely wrong. usually those who come up with these numbers are using bitcoin's current price with the difficulty to quickly come up with a random number!

So, the price jumped to $7,300 yesterday.

there has never been a single case of price being affected by whatever it costs to mine bitcoin and it won't start now either.

[FanEagle]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

I don't really get this, can you link me to the article? I don't really see how the mining fee has anything to do with Bitcoin price rebound. I have been following up with analysis from top analysts, like Dave that predicted last five months that the price was going to drop to $6000 and his prediction is accurate.

He came back recently and said that there is going to be an increase and that bitcoin will be going for a wild run, though some analysts have said it's not true, but I still believe he's right. He also tried to back his analysis with factors that weekly Gaussian channel indicator is bullish and that crypto bounced off the 0.5 Fibonacci retracement level of $3.2k to $13.8k range, which hints at bottoming price activity.