Bitcoin price due to fall below $20,000, traders warn as miners ‘capitulate’
Bitcoin (BTC) climbed back to $20,500 at the Wall Street open on October 28 as US stocks sought a stronger end to the week.
Stakes of $20,000 support fail increases
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD took advantage of renewed optimism as markets began trading.
The atmosphere was volatile after tech stocks suffered a big after-hours decline overnight, and Bitcoin managed to avoid incurring similar big losses.
At the time of writing, both the S&P 500 and the Nasdaq Composite Index were up around 1.3%.
“In this current range-bound phase after a prolonged downtrend,” popular trader @CryptoYoddha in summary to Twitter followers.
“Smart money/institutional players aim to build up or take positions without significantly increasing the price. I feel bullish.”
Economist, trader and entrepreneur, Alex Krueger meanwhile laid out the likely plan for the days ahead. Crypto, he argued, should retest recent lows before returning to key news from the Federal Reserve next week.
“Thinking crypto lower tomorrow along with stocks, some late Friday hedging, quiet weekend, ETH mid to low 1500s, BTC mid 1900s buys, then drive higher with FOMC next week,” part of a tweet read.
“Uptrend remains.”
Markets had quieted considerably after Bitcoin hit six-week highs, and Cointelegraph reported the extent of short liquidations carried out as a result.
Miners ‘biggest intra-Bitcoin risk’ to the market
Looking at what could puncture the bullish sentiment outside of macro, crypto research firm Reflexivity Research put a particular focus on miners.
Related: 3 Striking Similarities to Past Bitcoin Price Bottoms – But There’s a Catch
After major mining company Core Scientific warned of liquidity problems, concerns about the profitability of mining operations in the face of the exploding hash rate continued to surface.
As Cointelegraph noted, theories about why the hash rate deviates so much from the spot price even included Russia trying to get the industry to turn around.
“Miners remain the biggest intra-Bitcoin risk to the market in our view,” Reflexivity confirmed on the day.
Michaël van de Poppe, founder and CEO of trading company Eight, meanwhile, described miners as “capitulating” – a status not seen for months.
“Meanwhile; from a technical point of view, $BTC seems to be reaching long territories here,” he added of BTC price action.
“Sweeps the low and should hold around $19.9K. If that doesn’t provide support, then I’m looking at $19.6K.”
Data from BTC.com, meanwhile, showed a hash rate of around 257 exahashes per second, with difficulties due to undergoing a slight slowdown at the next adjustment, still nine days away.
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