According to a recent study shared by Cointelegraph, Bitcoin (BTC) may have already bottomed out or be “very close” to doing so, analysts looking at this week’s new data believe. Those involved in short-term selling may have ended most of their panic selling.
The Mayer Multiple is an oscillator that is calculated by taking the relationship between the price of BTC and its 200-day moving average (MA). Next, the Mayer Multiple indicator is created by taking the difference of the BTC price and its 200-day MA. In a Twitter thread on June 22, well-known indicator creator David Puell revealed what he says “looks interesting” right now for Bitcoin and was encouraged to forecast: “It is very likely that it has hit rock bottom.”
With many sources arguing that there is still a chance it could drop to $14,000 or below, bullish views on the current price action are slim. For Puell, however, the dynamics between long-term (LTH) and short-term (STH) holders hint that the situation is not necessarily as bearish as many fear.
Highlighting the cost base of each group, Puell showed that those who have been in the market longer paid less overall for their BTC than recent investors. With Bitcoin at multi-year lows, the pain falls more on STH than LTH. Therefore, the sale by capitulation of the former could have already manifested itself.
“In my opinion, it is very likely that we have had or are very close to a bottom,” responded popular analyst Root. However, as Cointelegraph reported, even LTHs — defined as wallet entities that hold coins for 155 days or more — have continued to distribute to the market in recent weeks.
Attention in mining
As reported by Criptonoticias, Bitcoin mining is not going through its best moment in terms of profitability. The production cost of 1 BTC is between USD 18,000 and USD 20,000 for small miners, while its market price is around USD 21,000. This low profitability makes miners sell their BTC to cover their operating costs, and they would continue to do so if their returns do not improve.
Research by Nikolaos Panigirtzoglou, an analyst at financial firm JP Morgan, shows that publicly traded mining companies reported massive sales between May and June of the BTC they held in hodl. This guild represents 20% of the entire current hashrate of Bitcoin.
These BTC sales in previous months, Panigirtzoglou argues, could affect the price of bitcoin. According to the specialist, “there is a risk that this pressure could continue.” Bitcoin mining is going through its worst moment in profitability so far this year. The hashprice, or cost for each terahash that a miner contributes to the network is around US$0.07, a minimum floor so far this year.
Source: Ambito
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