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Miners surrender and it is happening right now – opinion

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Miners surrender and it is happening right now - opinion

Miners surrender and it is happening right now – opinion
CONTENT

  • Crypto analyst predicts a fatal collapse of the crypto market due to the surrender of miners.

  • This view stands alone amid a more bullish sentiment in the crypto industry..

  • The current situation greatly complicates any Bitcoin predictions.

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Despite the fighting mood of the market, some believe that the surrender of miners right now creates strong divergence and hidden sell signals.

Debates on the crypto market about how miners will react to the upcoming halving in May do not subside. Earlier, the editorial staff of BeInCrypto already said that, according to one of the theories, on the eve of this event, miners will try to sell as many coins as possible before the reward is reduced in order to compensate for the increase in costs..

Crypto trader Mansasuma (@mansasuma) tweeted his take on the topic, warning that it would shatter bulls’ dreams. He believes that the capitulation of miners, which, judging by the hash tapes, is happening right now, could deal a fatal blow to the cryptocurrency market..

Miners surrender and it is happening right now - opinion

Surrender intensifies?

At the time of this writing, the bitcoin hashrate has won back the bulk of the March losses and has given positive signals. Likewise, mining profitability has recovered. However, the vigilant Mansasuma warned his readers that he was watching hidden divergence signals that should worry traders..

According to the graph he provided, the charts are currently showing strong divergence signals, and they are very reminiscent of the situation at the end of 2018, when a catastrophic collapse occurred on the crypto market. In this regard, the current correction may be an opportunity for miners to dump their coin holdings and take profits ahead of the halving..

… The hash ribbons actually say miner capitulation is happening as we speak

While you can get a sell signal on these ribbons during bull markets as well, on those setups the MAs aren´t strongly diverging; if they are we get a 2018 type death drop

We have the same setup now pic.twitter.com/3BKB4iuKvS

– Mansasuma (@mansasuma) April 6, 2020

It should be emphasized right away that such a forecast is not popular. Most of the crypto industry participants are much more optimistic, even if they do not expect Bitcoin’s explosive growth in the very near future..

Complicating factors

Miners surrender and it is happening right now - opinion

Unfortunately, this year another halving Bitcoin halving cuts the number of new coins created and earned by miners by half. This happens about every four years and … More Bitcoin fell on hard times for the whole world. The grave consequences of the COVID-19 pandemic are superimposed on the internal parameters of the cryptocurrency ecosystem, and this greatly complicates any attempts to predict the short-term dynamics of military-technical cooperation..

Against this background, the approaching halving began to be perceived less optimistically than the previous two. Many fear not only a drop in hash rate, but also a detrimental effect on prices of the coronavirus pandemic.

Some in these conditions continue to rely on the historical correlation of bitcoin with the S index.&P 500, although recently doubts have been voiced more and more that bitcoin is in the same bundle with the stock markets. Supporters of this position argue that bursts of positive correlation between BTC and S&P 500 can only be temporary.

However, at the time of this writing, Mansasuma’s bearish prophecies did not look scary at all. The bitcoin rate broke through the $ 7000 round mark and confidently settled in the $ 7100 area.

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