The estimated “electric cost” of Bitcoin (BTC) has fallen below $50,000, according to analyst Ted Pillows. That shift is adding weight to predictions of a potential price drop below $50,000, with Pillows suggesting it could hit a bottom last seen in 2024.
Key takeaways
Quick scan — what you need to know:
- The estimated “electric cost” of Bitcoin (BTC) has fallen below $50,000, according to analyst Ted Pillows.
- That shift is adding weight to predictions of a potential price drop below $50,000, with Pillows suggesting it could hit a bottom last seen in 2024.
- Mining Economics Point to a Lower Price Floor “Electric cost” refers to the estimated electricity cost needed to mine a single BTC, and according to Pillows, it has dropped below $50,000…
- “This means $BTC will eventually drop below $50,000 and could bottom around $46,000-$48,000, which also coincides with August 2024 lows,” he wrote.
Background
What led here, in plain terms:
- While his view is backed by traders on Kalshi who are currently forecasting a Bitcoin low of $48,000, not everyone thinks the near-term direction will be downward.
- For example, chartist Ali Martinez recently identified what he described as a “right-angled descending broadening wedge” on Bitcoin’s one-hour chart.
- Generally, technical traders read that pattern as a bullish reversal setup, and Martinez set a short-term target near $75,700 if the breakout holds.
- Meanwhile, Merlijn The Trader highlighted that BTC has reached the “DCA zone” on the Rainbow Chart for the fourth time in its history.
Why it matters
Why readers and decision-makers should care:
- And with both buyers and sellers digging in, the analyst said the next meaningful move will only come once Bitcoin’s price breaks clearly either above or below that band.
- As things stand, traders are caught between two contradictory signals, with the mining cost data and prediction market positioning suggesting that the path of least resistance may be lower, while…
- The post Analyst: Bitcoin Could Bottom at $46K as ‘Electric Cost’ Falls appeared first on CryptoPotato.