Crypto market will crash again? ✍️

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. Currently, many investors are wondering if Bitcoin might experience a correction or a price drop, especially as it's been consolidating between 90,000 and 100,000 for the past few weeks. To understand this, we can look at three key factors. First, Bitcoin’s mining cost is currently around 88,000-89,000, while its price is around 98,000, meaning miners are still making a profit. In previous cycles, after a halving event, Bitcoin’s production cost rises above its market price for 5-7 months, leading to consolidation as miners, who are operating at a loss, exit the network. When the cost falls back below the price, miners start holding, reducing supply and driving up the price.

Second, tracking indicators like the Coinbase premium and funding rates can provide insights into market sentiment. During times of market fear, we’ve seen panic selling, especially from retail investors, signaling potential market bottoms. Currently, the funding rate remains positive, suggesting a bullish outlook. While we can't predict the exact market top, these parameters indicate that Bitcoin is still in a healthy position, and there’s no immediate need to panic. Monitoring these factors can help us better understand the market’s direction. That's it for today. Thanks & have a good day!!