The decentralized nature of blockchain and crypto application means that their currencies are censorship resistant. However, their only fallibility is that it must be tagged or connected to the traditional finance industry.
Still, adoption of cryptocurrencies and especially Bitcoin—as several studies conclude, is dismally low. Miners play an important role of maintaining the network and ensuring that blocks are confirmed every 10 minutes or so keeping the pulse going.
They must invest the latest gear with high up-times (reliability) as the network operates every day of the week. After winning rewards—which were halved to 6.25 BTC, they must liquidate them for fiat or Tether US (USDT) to cater for mounting operational costs.
This cycle must be kept going otherwise they close shop more so when prices are sliding.
Sichuan Miners had their Bank Cards Frozen
A report by Jinse shows that Sichuan authorities have stepped in to reign and streamline the lucrative cryptocurrency mining industry and have subsequently frozen several bank cards operated by some crypto miners and over-the-counter (OTC) desks.
This follows extensive investigations in an effort directed from the central government to stem the integration of black money into the legal and highly regulated Chinese financial system.
Several miners and OTC desk operators were affected and have on follow up been asked to supply sufficient evidence proving that their funds are not from the black money or are enablers of money laundering.
Hash Rate from China Falling
So far, there are no prosecution and the Bitcoin hash rate continues rise after temporarily falling below the 100 EH/s.
A parallel finding by Token Insight reveals that in the wake of increasing regulations in China, the total hash rate from the country has shrunk to 65 percent, meaning the Bitcoin network continues to decentralize as nodes are now found in most countries around the globe.
Bitcoin Price Analysis
At the time of press, Bitcoin [BTC] prices are consolidating and down three percent in the last trading week changing hands at around $9,430.
Technically, BTC is bullish but in the short-term, bears have the upper hand. This is largely subject to how prices react at the $10,000-$10,500 resistance zone. The level is a strong sell wall of which bulls have been unable to surmount.
From the daily chart, as long as prices are confined inside the rising channel and trending above the three-month support trend line and the middle BB (the 20-day moving average), bulls have a chance. Any break above $10,000—as mentioned in previous Bitcoin price analysis, will open up $13,800 and even $20,000 by the end of the year.
On the flip side, there have been a confirmation of the double bar bear reversal pattern of June 1-2, 2020 as prices slide below the three month-support trend line with decent trading volumes. If prices fail to close above this level, there is a strong likelihood that BTC may slide towards $8,500 and later $8,000.
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.
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