Investing.com – The price fell 70% from its all-time high of $69,000. Some miners, essential to the functioning of the blockchain, could already suffer losses at current prices.
According to Securitize Capital, there are already mining companies whose production costs for a token exceed $20,000. In addition to the infrastructure and related electricity costs, this is also related to rising interest rates worldwide.
Thus, the companies concerned are forced to sell BTC from their stock in order to withstand the cost pressure. This naturally increases supply on cryptocurrency exchanges and, according to JPMorgan Chase & Co (NYSE:), the downward pressure will continue into Q3 2022.
However, Bloomberg reported, referring to the investment company Arcane Crypto, that the costs per bitcoin for large mining companies amount to only $8,000.
Bitcoin Technical Price Marks
Bitcoin’s daily trading range has narrowed in recent days, while the 23.6% Fibo retracement of $21,110 is continuously tested.
A daily close above this important level did occur, but this did not result in a relief rally among investors towards the next resistance in the form of the 38.2 percent Fibo retracement of $23,263.
Instead, price fell, formed a bearish hammer and closed at the 23.6% Fibo level. Thus, the side of this zone where the closing price of the day is located will be decisive for the rest of the events.
As long as there is no noticeable break in either direction, range trading will continue around the $21,100 level.
By Marco Oehrl