Bitcoin Miner Revenues Go Down as the Market Trades in the Red Zone
The cryptocurrency market is trading in the red zone for the first time in over a week. Over the past 24 hours, the market has lost around 2% of its value. Despite this, the total market cap of the cryptocurrency is still above $1 trillion.
Bitcoin Miner Revenue Drops
Despite reaching its resistance level at around $23k, Bitcoin has lost around 3.5% of its value in the past day. At press time, the cryptocurrency is trading at around $22,865.53. Ethereum, on the other hand, has gained over 35% in value over the past seven days. This move is due to the recent announcement about creating a new blockchain-based platform, Ethereum Merge.
Ethereum has also lost around 2% of its value in the last day. It is currently trading at around $1,500. The short-term trend for cryptocurrency could continue to be positive.
For the past month, the average daily revenues of miners have been rising, but they have started to lose their revenue each week. Last week, this trend ended when the mining industry experienced another decline, which resulted in the average daily revenues dropping to $17.7 million. Notably, miners saw revenues almost 60% lower than their peak in November.
The sudden decline in the profitability of bitcoin miners led to a sell-off across the space. Many miners had to offload their assets to maintain their cash flow. In June alone, they offloaded 25% of their total holdings. With the prices remaining low, July sales are expected to be higher.
For the last couple of months, miners have sold more Bitcoin than they have produced. For instance, they sold more than a hundred percent of the total amount of Bitcoin they had produced in May. In June, when public miners only produced 3,900 BTC, they only sold around 14,600 BTC, which accounts for 25% of their total holdings.
Despite the decline in the average daily revenues, the fee per day was up by 13.61% last week. This increase helped the total revenue from fees to reach 2.59%.
Key Ethereum Levels to Watch
Despite the recent decline in Ether, the 4-hour chart of the currency shows that it remains on a positive path. The technical indicators suggest that the price could rise before it reaches its next significant resistance level.
The bullish momentum continues to be supported by the rising trend line of the Moving Average Convergence Divergence (MACD). However, a sustained bullish performance would take it to the negative territory. The 14-day relative strength indicator (RSI) shows that ETH is no longer at the upper end of its range. The bulls will need to reclaim control over the price to push it higher.
If the trend continues, it could fall below the support level of $1,382. However, it should still defend its position above the resistance level of $1,300. If the bulls regain control, it could rise to the top of the range of $1,499 to $1,600.
Polkadot (DOT) Gathers Steam
DOT has been rising steadily and is currently trading at around $7.92. It is eyeing the next resistance at $8.07. The pair is expected to continue its upward movement and reach its next target of $8.50. The price of the DOT/USD pair has gained 1.38% overnight. It is expected to continue rising and reach the $8.07 level.
The total market cap of the cryptocurrency known as DOT is around $7.73 billion. It is currently ranked as the tenth most popular cryptocurrency in the world. Its 24-hour trading volume is around $750 million.
The price action of the DOT token has been positive in the last 24 hours. The rising trend has supported it, and the support at $7.24 is considered a short-lived support level. However, if the bears take over the market, the price may fall back to the support level or lower. The increasing strength of the Relative Strength Index (RSI) supports the pair’s bullish trend. This technical indicator shows that the price is entering a bullish trend.
