Bitcoin price are increase, Is Bitcoin overbought?

[somrat4030]

Jan-30, 2022, Bitcoin Price Analysis and Market Forecast, by forex forum.​

While bitcoin is consolidating below the level of $ 40,000 per coin.
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We suggest speculating on how much bitcoin can and should cost. The price of any asset is determined by supply and demand, taking into account the cost. That is, figuratively speaking, bitcoin cannot cost less than the cost price, since in this case, no one will simply mine it. However, this statement is true only for the medium and long term. What does it mean? If the price of bitcoin drops below the cost price for two weeks or two months, this will not change the overall picture of the situation in any way. Miners will not give up mining, because they will know that the price will rise again. Thus, in the short term, bitcoin may very well cost less than the cost of its production. According to various estimates (in different mining locations, the cost of electricity, premises, equipment, and so on is different) the cost of one bitcoin coin ranges between 20-30 thousand dollars at the moment. The profitability of its production is 20-30% (but again, these are "average figures for the chamber").

Source: instaforex.com

Moreover, Bitcoin Stands Still at $38K​

It was just a few days ago when the primary cryptocurrency dropped two consecutive times to $35,500 after failing to overcome $36,000. However, the bulls stepped up at this point and pushed the asset north.

BTC reclaimed the aforementioned level and, after a brief retracement, went on the offensive again. This time, the increase was more gradual than sudden, and bitcoin tapped $38,000, as reported yesterday.

In the following hours, the asset kept climbing. As a result, it went to a daily high at nearly $39,000. However, it failed to break above that level and, as of now, has declined by several hundred dollars.

On the other hand, Ripple price is testing investors' nerves as the price is testing and breaking the monthly S1 for a second week in a row. As long as price action can make a weekly close above, recovery is possible, as a weekly close below would set the scene for a further downfall, holding initially 17% losses. Expect the current market volatility price to fall below and set the scene for $0.50 next week.

XRP price could have tested investors nerves once too many.​

Ripple price is set to close the week below the monthly S1 support level at $0.60. Last week bulls were able to uphold price action above there for the weekly close, but that looks to be falling apart for this week. With a close below, the start on Monday could see a further continuation of that slide and hit a 17% loss towards $0.50, going further into the trading week next week.

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[WalletInvestor]

While supply and demand are very strong factors in Bitcoin's price movements, we also cannot ignore the fundamentals when talking about its prospects. At this point, as it has gained traction and popularity, it doesn't exist in a vaccuum - events on the stock and forex markets and general investor sentiment have a strong effect on Bitcoin's price, too. Not mentioning the constant FUD we've been getting over the past several months due to the controversal reception of El Salvador's acceptance and statements from some central financial institutions.

 

[WalletInvestor]

No coincidence that the IMF manipulated a huge price drop in BTC shortly after El Salvador adopted it as their currency. To try and fight central banks, World Bank, IMF, etc is futile, in my opinion. A great shame because I am all for decentralised currencies and transactions. I would much rather live in a world where the people have control over their currencies and money supplies instead of fraudulent central banking schemes. It won't happen in my lifetime but I dream one day this planet lives free of central banks and Government tyranny. But that's another topic.

I support decentralisation completely, too, but do you really think the IMF's actions were out of manipulation? Maybe I am naive but it seems to me that their decisions are based on their evaluation of financial risks (even if some of these might be questionable).