21.07.202108:00 Forex Analysis & Reviews: Chinese miners will return, but not in full force

The quotes of the main cryptocurrency overcame the level of $31,100, and even worked out the level of $29,700. Thus, our forecast regarding the further fall of bitcoin is still fully coming true. It should be noted that many cryptocurrency experts believe that bitcoin will continue its decline, at least to the level of $24,000, or most likely, much lower. As we said earlier, a whole set of factors speaks in favor of this scenario: the weakest fundamental background from China, technical factors, and the fact that the bullish trend has ended. Thus, experts believe that bitcoin will recover in a year or two, and by 2025 it may be worth much more than $100,000. Some even believe that bitcoin will be able to recover to its maximum price values in 2021. We are not so optimistic and, so far, we are considering only a corrective scenario.

Meanwhile, it was calculated how many miners from China will earn again after moving to other countries, and which will be disabled forever. The total hash rate of all disabled miners in China is 90 EH/s. The total amount of electricity required for the operation of such a number of miners was 5.2 GW. Experts believe that until the very beginning of 2022, Chinese repressed miners will try to settle outside of China. However, this is not a quick matter, because not everyone will be able to organize the move in a couple of months. Experts believe that some of the mining devices will not go anywhere from China and will no longer participate in the production of cryptocurrencies. The combined power of these devices is estimated at about 22 EH/s. These are outdated devices and it is simply unprofitable to transport them to another country. Also, experts believe that this equipment is unlikely to be sold on the secondary market, which now simply does not exist inside and outside China, the demand for outdated equipment is not too high. It is also reported that there are certainly enough places for mining outside of China, but there are few places where you could bring your equipment and immediately start working. Moreover, in many places, electricity is much more expensive than in China, which makes mining less profitable. It is also noted that there are many more sites where mining equipment can be launched within 4-5 months, so most miners choose such options. They require additional investments, arrangement, and additional equipment. All this also takes time. Thus, given that most of the Chinese mining equipment will start working again no earlier than the end of 2021, bitcoin still has plenty of time to continue its decline.

Technically, bitcoin overcame the support level of $31,100 and worked out the level of $29,700. Thus, if the last level is also overcome, then bitcoin will clear its way to the level of $24,350. The fundamental background and the very fact that the bullish trend is over, now speak in favor of continuing the fall of digital gold. Wednesday morning began, oddly enough, with the growth of bitcoin quotes, so the attempt to overcome the level of $29,700 cannot be called successful yet.