Bitcoin price drops to $ 6.1,000 shortly after equity markets close

Bitcoin price drops to $ 6.1,000 shortly after equity markets close

Market update

After trading in the $ 6,450 to $ 6,850 range in the past eight days, the bitcoin ( BTC ) price eventually moved higher, this time as the digital asset fell 8.72% to a daily low of $ 6,068.     

The move somewhat reflects the performance of traditional markets, which also ended the day with losses. The Dow closed at 915 points, the S&P 500 pulled back 3.37% and the Nasdaq fell 3.79%.    

Daily market chart for the crypto market. Source: Coin360  

The break below $ 6,550 dragged the price below the ascending trend line and supported $ 6,450. Traders had expected a sharp move in sight after trading sideways most of the week with volume declining. In addition, they could not postpone beyond $ 6,850 and reverse the resistance to the support.  

BTC USDT 4 hour chart. Source: TradingView  

At the time of writing, the price is at 12-MA (daily timeframe) and traders are trying to regain $ 6,200 support. If this attempt fails, a new test of $ 5,800 and $ 5,350 is possible.  

In the short term, the bitcoin price must first recapture $ 6,200 and then push $ 6,335 above the high-volume VPVR node to reach the $ 6,500 range again. 

Earlier this week noticed filbfllb Cointelegraph staff , that the probability that the Bitcoin price before May reached US $ 10,000 , small is. filbfilb explained that:        

“Bitcoin is trading with a fundamental decision point of $ 6.8,000. This is an earlier support that now acts as resistance and the tip of a high volume knot broken down by a diagonal resistance trend line going back to mid-2019. "  

According to filbfilb, the Bitcoin price is approaching a crucial moment and: 

“If the bulls are unable to regain the $ 6,800 level, the 200-week moving average is around $ 5,500 on a high-volume node that previously led the way in the last attempt to break $ 6,800 has been. Should the bulls gain a foothold, the diagonal support will be $ 6,250. "  

Bitcoin daily price chart. Source: Coin360  

Altcoin prices also fell when the Bitcoin price was corrected. Ether ( ETH ) was down 7.07%, Bitcoin Cash ( BCH ) was down 9.33% and Tezos ( XTZ ) was down 11.08%.        

The market cap for cryptocurrencies is now $ 172.9 billion, and Bitcoin's dominance rate is 65.1%.

TRACK THE MAIN Crypto Markets HERE IN REAL TIME . The U.S. holding company stopped mining after Bitcoin fell below $ 4,000     

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Although the cryptocurrency markets after massive sell-offs in mid-March slightly recovered have who has fluctuating price of Bitcoin ( BTC ) led to a remarkable instability and closure of the miners.         

Soon after Bitcoin fell below the threshold of 13, DPW Holdings' March 4000 $, a Nasdaq listed holding company, announced that it would temporarily shut down its cryptocurrency mining business, Digital Farms.     

DPW will notify the SEC of several changes in its business related to the corona virus

According to a business update March 18, the American US at the SEC filed , the suspension of the Digital Farms goes with other closures and changes in DPW in response to the COVID-19 pandemic associated.    

While changes in other DPW companies are directly related to the effects of COVID-19, Digital Farms is said to be exposed due to Bitcoin's recent drop in prices. The submission is: 

"Digital Farms' cryptocurrency mining operations have been suspended indefinitely, largely due to the sharp drop in the Bitcoin market price."

Formerly known as Super Crypto Mining, Digital Farms is a wholly owned crypto mining subsidiary of DPW. As reported by Cointelegraph , Digital Farms used DPW's own mining hardware AntEater, which was developed in collaboration with the technology giant Samsung. In May 2019, Digital Farms acquired a 617,000- square-foot service in the U.S. to increase overall mining profitability by providing access to 28 megawatts of electricity and an infrastructure to support 300 megawatts.                 

Digital Farms on hold 60 days before the next halving of Bitcoin

The announcement of the suspension of Digital Farms came just 60 days before the next halving of Bitcoin in May - one of the most anticipated events in the crypto community, with a 50% cut in mining rewards. It takes place every four years, the Bitcoin halving historically has led to significant growth in Bitcoin price. However, some crypto players believe that the next halving of Bitcoin will have little or no impact on Bitcoin's price.          

Although some factions of the crypto community expected Bitcoin to increase in the upcoming halving, Bitcoin saw the opposite trend in March 2020. On March 13, Bitcoin's price "halved" its price, dropping to just $ 3,600 . At the height of the crash were the daily losses of the coin over 50%.        

A number of miners appear to have ceased operations after the crash caused unprofitability

The massive drop in bitcoin later led to significant instability among miners as mining became unprofitable. This forced a number of miners to remove their hashing performance from the network, blockchain analytics company Glassnode reports . Likewise, Chinese mining pool, F2Pool, also reported on March 12 that Bitcoin's daily mining revenues suffered more losses than during the November and December 2018 price lows.          

When some miners retired due to unprofitability after the crash , Bitcoin experienced the second-largest historical loss of difficulty ever. According to Glassnode data, the difficulty of Bitcoin - a measure of the time it takes miners to add new transactions to the Bitcoin network - decreased by almost 16% on March 25 . While some industry players believe that adjusting the downward difficulty completes the so-called "miners" "capitulation cycle", others are confident that such events mark a low point in the market.           

At press time, traded Bitcoin, according to Coin360 at 6,652 USD, an increase of 0.2% in the last 24 hours corresponds .