• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Bitcoin Correction Bottom Target Is $6,000, Coincides With Production Cost

Tony Spilotro by Tony Spilotro
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 2min read
bitcoin mining bottom
Advertisement

Bitcoin’s parabolic rally of 2019 is now a thing of the past, and what lies ahead is anyone’s best guess. Crypto analysts are divided, with some calling a quick return to a bull market, while more bearish investors believe that Bitcoin has more to fall and will look for a bottom lower.

However, a formula used to determine the bear market bottom at $3,150 may provide the most accurate prediction for where the bottom of the current downtrend may be, and it coincides once again with the cost of production for Bitcoin miners.

Calling the Bear Market Bottom: Miner Production Cost Was Unbreakable

A new discussion thread is taking crypto Twitter by storm, and it is centered around a particular crypto analyst, his 12-months in advance call of Bitcoin’s bear market bottom, and the data set he used to determine that number.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | Crypto Market Death Cross Inches Closer, Will The Bear Market Return?

The crypto analyst goes by the name of FilbFilb, and on December 4, 2017, he suggested that Bitcoin’s bottom would be either $2,000, or $3,000, but would “lean towards” $3,000. Bitcoin’s bottom was $3,150 on many top exchanges.

$BTC: WHAT HAPPENS NEXT

1/ @filbfilb called BTC’s bear market bottom 12 months in advance — before the bull market even finished!

His words on Dec 4, 2017: “I would lean towards 3k”.

His take on what comes next (and why) is fascinating. https://t.co/WkcsvReFzo pic.twitter.com/Dk04zLl9lm

— Cole Garner (@ColeGarnerBTC) October 9, 2019

But where did that number come from? And how was it so accurate? The answer is in production costs. Even Satoshi Nakamoto, the mysterious, pseudonymous creator of Bitcoin, said that “the price of any commodity tends to gravitate toward the product cost.”

The production cost for the average Bitcoin miner to produce each BTC, was roughly $3,170 around March 2018. The theory is that much of the selling pressure in the crypto market comes from miners who are ferociously churning out new Bitcoins with each mathematical puzzle they solve.

8/ Production cost doubles when the block reward halves. That makes $6340 the new floor.

Smart money knows it, again. Retail has no clue, again.

(Lots of longs in the right place, for the wrong reasons).https://t.co/elkSTCYDUw

— Cole Garner (@ColeGarnerBTC) October 9, 2019

But things have since changed. The production cost has only increased slightly, however, the absolute bottom price of Bitcoin will have to change around the halving. Each Bitcoin halving cuts the reward miner receive in BTC in half. This causes production costs to double overnight. Top Bitcoin mining farms know this, and have already priced the doubled cost production into their “bottom line.”

That puts the new bottom, according to this theory, at roughly $6,340. Interestingly, targets from Bitcoin’s triangle formation also match up this range as a possible bottom target – and also acted as support during most of the bear market, until the true bottom was set.

Related Reading | Bitcoin Forming Continuation Triangle From ATH, $50K+ Target

The analyst breaking down this data, step by step, says that each new bull market is “preceded by a terminal shakeout” or a “higher timeframe stop run,” before going on a parabolic rally. The current price action, the analyst suggests, is just that, and is healthy for Bitcoin long-term. Because of this potential bottom zone, anywhere from $6,400 to $7,500 is considered a “great buyzone.”

 

 

Tags: bitcoinbottomcryptofilbfilbmining
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

Bitcoin BTC BTCUSD

How An Ex-CIA Director Proved Bitcoin Use in Crime is Declining

8 hours ago
Ripple XRP XRPUSDT

XRP Above $2? Why DeFi Integration Could Be Game Changer

9 hours ago
Binance Coin Coinbase IPO

Coinbase Listing Sends Binance Coin (BNB), Exchange Tokens Soaring

9 hours ago
Bitcoin BTC BTCUSD

Bitcoin Funding Flips Bullish, But Are Liquidations Imminent?

10 hours ago
legal challenges

What Are the Legal Challenges That Crypto Faces and the Way Out?

11 hours ago
Fed Chair Says Still “Working on” Digital Dollar as China Pulls Ahead

Fed Chair Says Still “Working on” Digital Dollar as China Pulls Ahead

13 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Polkadex IDO Launches On Polkastarter on the 16th of April

April 13, 2021

Fast-Growing Exchange Bityard to Launch Its First Contest for Global Traders

April 13, 2021

Regtank Shortlisted As Finalist for Asia Fintech Awards 2021

April 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.