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Bitcoin, Watch Out Below

via Forbes: One of my favorite signals for the crypto market is mining rewards. Bitcoin’s price and the price of all the altcoins are linked. Take a look here and you can see that all the three-month graphs of the top coins and tokens are highly correlated. It’s an ecosystem so it’s hardly surprising that they are tightly bound together.

As bitcoin goes so do the altcoins and if you have a strong signal from the altcoins then you have what is going on under the hood of bitcoin.

Well, there is such a signal and it’s mining rewards. I look at the rewards for the powerful 1080ti Nvidia card to get my guide. Right now it has fallen off the charts. A few weeks back and the card would excavate $3.50 of bitcoin-equivalent altcoins but right now you are lucky to dig $1.50. This is a flashing warning to me as the drop in mining rewards has been faster than the drop in bitcoin’s dollar price and is at the lowest end of the range in the last year. Bitcoin is on the ledge of another heavy fall that I am expecting this summer to bring the price down to a low from where it bottoms.

This is simply a repeat of the many crashes of bitcoin. Here is the crash of bitcoin 2011:

bitcoin

Here is the crash of bitcoin 2013:

bitcoin

Here is the crash of bitcoin 2014:

bitcoin

Here is the crash of 2018:

It’s a pity we can’t see the future but perhaps with a little cut and paste we might get a glimpse:

bitcoin

Of course, copypasta is not fate, but with mining rewards cratering it’s looking bearish and until the day headline news is trumpeting the death of bitcoin, the bottom has not been reached.

But remember, this is not the end of bitcoin, it is just the beginning, so look at all the price axis of the previous charts and remember… to the moon.

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