BTC – rule no.1 – DON’T PANIC. We won’t fall lower! Here is why.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Guys, first of all. don’t get too emotional over what happened on BTC and other alts.
Whether it was due to BCH hard fork whether whales took a chance to lower the price to buy it, we know we won’t fall below $5500 - $6600 rectangle . At least not for long. This rectangle has been in force for a year and it is still valid.
We know what you are thinking right now. Bullshit, nonsense, rubbish…

One of the most important factors of the BTC’s network is its sustainability. How is it achieved?
Through miners. Why do they mine? Some of them just for fun but the vast majority because they earn money this way. When do they earn money? To make the story short – when their costs are lower than their income. What is the major cost of their operational activity? Electricity.

So as we don’t know exactly where all miners located are we can make some assumptions based on the location of master nodes.
We made a detailed analysis couple of weeks and a couple of months before. Please take a look here.

To summarize, it turned out that the weighted average price of the electricity (depending on the global location) is somewhere between $5800 - $7000 per one BTC . In order to keep this price, Satoshi Nakamoto who owns nearly 1 mln of bitcoins can change them over the counter (OTC) to dollars and buy large amounts of BTC on the exchanges which makes the pressure on the price thus the price moves up. Would you do it if you were at his place? Of course, as you would own the biggest amount of BTCs so the bigger the price the richer you would be.
Right now we are a bit below $ 5800 but we think it will last only for a couple of days.

This is the time to buy not to sale. Do not give in to emotions.

Technical analysis details:
• $5500 - $6600 rectangle defended for the 7th time over the past year
MACD – still a positive divergence
• The price is below all EMAs - depending on how much conservative you are, enter when the price crosses short, mid-short, mid-long or long EMA .
RSI - strong downtrend which has already stopped. Wait for the trend reversal.
Stoch RSI - oversold - a good time to buy
• Weis Volume Wave chart – the downtrend is slowing down – bounce north expected

So traders and hodlers. What do you think of such an approach? For us, it is clear it is still valid.
Please drop us a line in the comment sections.
Thank you for being here.
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WBM Team

Related Ideas

Both Coin Cap and Bitcoin arrived at bottom of triangular convergence.
Now, Can I expect that the drop is over?
What do you think about this? I want to hear your opinion.

1) Coin Market Cap

2) Bitcoin

WBM_Team pkb6698
@pkb6698, please look at our new analysis.
Lol i'm so glad I didn't follow you
WBM_Team martin757
@martin757, we will bounce back quickly.
martin757 WBM_Team
@WBM_Team, This price just fell through your "rectangle" . I really don't get why you still remain on sentimental bullishness where your OWN advice above clearly says "it will not break that 1y support", well it did, what do you do then? You didn't mention, but I assume that's a sign of weakness if it broke your "rectange", so I guess that means short? !!!!????