Despite the market’s optimistic mood, some believe that the miners’ surrender will lead to strong divergence at this point and there will be hidden sales to the public.
The debate over how miners will respond to the upcoming halving in May has not subsided in the crypto market. BeInCrypto’s newsroom previously reported on a theory that miners will try to sell as many cryptocurrencies as possible in advance of the event before cutting the mining rewards to offset the rising costs.
Cryptocurrency trader Mansasuma (@mansasuma) shared his thoughts on the subject on Twitter, warning that this would ruin the dreams of bullish investors. He believes the miners’ surrender that is currently taking place after the hash data could do a fatal blow to the crypto market.
Will the surrender accelerate?
At the time of this writing, the hash ratio was from Bitcoin BUY NOW made the most losses in March and sent positive signals. The profitability of mining has also been restored. Merchant Mansasuma, however, has warned his readers that he sees hidden signs of divergence that should be of concern to traders.
Based on the graph above, there are currently strong signs of divergence in the charts and they are very similar to the situation at the end of 2018 when there was a catastrophic breakdown in the crypto market. In this regard, the current correction may result in miners dropping their cryptocurrency holdings and stating the benefits in anticipation of an upcoming halving.
… The hash tapes actually say that the miners’ surrender takes place as we speak
While you can get a sell signal for these tapes even during the bull markets, the MAs do not diverge significantly with these setups. If so, we get a 2018 death
We now have the same setup pic.twitter.com/3BKB4iuKvS
– Mansasuma (@mansasuma) April 6, 2020
It should be noted that such a forecast is not one of the most popular. Most crypto industry players are much more optimistic, though they don’t expect the price of Bitcoin to go up soon.
Factors that complicate the course of Bitcoin
Unfortunately, the price of Bitcoin has dropped sharply this year, affecting all sectors of the world. The dire consequences of the COVID-19 pandemic overlap with the internal parameters of the crypto ecosystem, making any attempt to predict the short-term dynamics of BTC very difficult.
Against this background, the forthcoming halving was felt to be less optimistic than the previous two. Many fear not only a decline in the hash rate, but also an adverse impact on prices due to the coronavirus pandemic.
Some continue to rely on Bitcoin’s historical correlation with the S&P 500, although there have recently been doubts that Bitcoin appears to be in line with equity markets. Proponents of this position argue that positive correlations between the BTC and the S&P 500 can only be temporary.
At the time of writing, however, Mansasuma’s pessimistic prophecies do not appear to be terrifying at all. Recently, the bitcoin price has breached above the $ 7,000 level and seems confident to have settled at $ 7,100.
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