Bitcoin mining expenses have skyrocketed to an all-time high of $137,800, while the price is experiencing significant annual opening difficulties. According to the IQ 276 holder, market manipulation may dissipate within a week, potentially paving the way for a massive price surge.
Bitcoin is currently trading at significant levels of resistance, with various technical factors exerting pressure on the digital asset. The cost of mining is soaring to record heights, and the price action is stabilizing, indicating a potential breakout in the near future.
Source: yhbryankimiq on X,
According to yhbryankimiq on X, the current price is a discount, and market manipulation has been evident in recent trade. However, this manipulation is expected to disappear in a week, potentially leading to a new all-time high for the cryptocurrency.
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Record Mining Costs Signal Strong Floor
The cost of mining has reached new heights, with TedPillows on X stating that production costs were the highest since their inception. Mining a single Bitcoin costs an average of $74,600, while all-in costs with depreciation soar to $137,800, indicating a strong floor for the cryptocurrency.
Source: TedPillows on X
According to recent industry statistics, mining expenses reached $96,100 USD per Bitcoin in Q3 2024, with the production cost of a coin amounting to approximately $49,500 in cash. Considering other costs such as depreciation and stock compensation, the total cost increases significantly, indicating a strong foundation for the cryptocurrency’s price action.
Miners continue to build infrastructure despite the high costs, indicating hope for an increase in prices. The network hash rate was over 800 EH/s recently, with the current seven-day average hash rate at 749.05 EH/s, demonstrating the growing strength of the Bitcoin network.
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Critical Yearly Open Becomes Key Battleground
These annual open levels have been crucial throughout the history of Bitcoin, with the most critical resistance at the moment being the yearly open, according to CryptoRover on X. A closer look at each yearly open since 2014 shows steady trends, with these levels consistently coinciding with significant support or resistance levels.
Source: CryptoRover X,
The 21-day SMA at $99,600 is displayed as the short-term resistance on technical indicators, while the 50-day SMA is a key support at $94,650. The Relative Strength Index (RSI) is currently at 52, indicating market neutrality and a potential breakout in the near future.
Historically, trend direction is determined by price action around yearly openings, with breakouts of these levels usually causing a prolonged rally. Attempts not to violate them often cause prolonged periods of consolidation. Bitcoin has come to test the psychological level of $100,000 on several occasions lately, indicating a strong potential for a massive price surge.
Mining difficulty was at historic highs associated with past cycles, enhancing security and increasing the cost of production. This forms a basic foundation of price action, with the weighted average cost of cash to mine one Bitcoin increasing to about $55,950 in Q3.
The interplay between the record mining costs and the key resistance forms an interesting setup, with past trends indicating that annual open breaks bring about long-term trends. The potential downside is minimized by production cost floors, and the market structure shows that coiling is taking shape, indicating a potential massive breakout for Bitcoin in the near future.
