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Bitcoin’s “Electrical Cost” Suggests Possible Bear Market Floor Near $50,000, Analyst
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Key facts
- As of this writing, the price of BTC stands at around $602,388, reflecting an almost 3% jump in the past 24 hours
- The analyst noted that technical indicators, notably, the RSI (14) and the EMA50/200, are telling a clearly bearish story
- Pillows pointed out that Bitcoin’s current Electrical Cost sits at approximately $48,694, a threshold still somewhat far from Bitcoin’s current market price
- Amid these concerns are speculations concerning its trajectory, some of which point to bottoms as low as $25,000
Summary
Bitcoin’s bearish structure over the past few weeks has raised clear concerns about the flagship cryptocurrency’s future. In a June 6 post on X, crypto analyst Ted Pillows implied that the Bitcoin price might see further declines before a definitive bear market bottom is established. For context, the model estimates Bitcoin’s fundamental production costs by measuring the electricity required to mine new BTC. In line with historical data, Pillows explained that Bitcoin bear markets have never fallen below this Electrical Cost, despite the severe drawdowns seen during these periods.