Profile picture
, 8 tweets, 10 min read
My Authors
Read all threads
1) If you're a trader or investor in #Bitcoin & dont understand that the primary source of sell pressure on the price of BTC comes from Miners, its in your best interest to research Miner Sell Pressure, Difficulty, Halving 2020, & Miner Capitulation below:
blockwaresolutions.com/research-and-p…
2) Today we witnessed one of the largest Difficulty reductions in Bitcoin history. In the past, extreme difficulty reductions signal favorable probabilities for long-term capital deployment.
3) Yes, many leveraged traders blew out with the recent price decline, but Bitcoin continues to show exhaustion because there are still 54,000 ($540,000,000 when Bitcoin is $10,000) newly minted Bitcoin released each month to Miners.
4) A significant percentage of which must be sold to fiat in order to fund their electricity expenses. This generates consistent sell pressure on the price of Bitcoin. Extreme Difficulty reductions indicate that inefficient miners were forced to shut down (Miner Capitulation).
5) These miners were operating on thin margins and therefore, were forced to sell all of their mining rewards. They were the primary source of Miner Sell Pressure on the network.
6) After shutting off, Bitcoin they were receiving is allocated to the more efficient, experienced miners with excellent margins who are positioned to accumulate a larger percentage of the newly minted Bitcoin rather than having to sell it - significantly reducing sell pressure
7) and establishing a healthier environment for Bitcoin to advance
.@cburniske .@PeterLBrandt .@ToneVays .@TuurDemeester .@woonomic .@100trillionUSD .@TheCryptoDog .@crypto_rand .@skwp .@fundstrat .@NicTrades .@nic__carter .@scottmelker .@stephanlivera .@cz_binance .@novogratz
.@nlw .@TashaARK .@offordscott .@lawmaster .@Melt_Dem .@twobitidiot .@RaoulGMI .@h4shr8 .@BKBrianKelly .@crainbf .@AdaptiveIO .@WolfieZhao .@jimmysong .@CremeDeLaCrypto .@APompliano .@pierre_rochard .@laurashin .@joelcomm .@teedubya .@PeterMcCormack .@MartyBent .@AriDavidPaul
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Matt D'Souza

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Related hashtags

#Bitcoin

More from @mjdsouza2 see all

Profile picture
Matt D'Souza
@mjdsouza2
1) We put this research piece together in January with the intention of keeping it internal and solely sharing it with clients we advise, but given the fear in the market, especially for miners, we have elected to share it with everybody. blockwaresolutions.com/research-and-p…
2) Everyone in the Bitcoin space should deeply understand this information as it thoroughly explains the Bitcoin Mining Network and how Miners create constant sell pressure on the price of Bitcoin. Bitcoin Miners are the backbone of the network as they are the security layer and
3) arguably the most important market participant to understand, just as OPEC effects the Oil Market and US Shale has its breakeven shut off prices. The difference in the Bitcoin Commodity is new supply is always released every 10 minutes, which is dictated by code rather than
Read 18 tweets
Profile picture
Matt D'Souza
@mjdsouza2
blockwaresolutions.com/research-and-p…

Escalation in US-Iran Tensions Sparks Rally in Bitcoin:

With a technology in its infancy many market participants price in the future value of a technology based on its expected use cases & adoption. This process is called price discovery. Although many
believe Bitcoin will be utilized as a payment system, the market disagrees.
64% of the available Bitcoin Supply has not moved since 2018, weakening the payment system thesis. How frequently is Physical Gold transferred – almost never.
Individuals purchase gold as a store of value & keep it locked in vaults for several years as holders have conviction in gold as a store of value. 64% of Bitcoin being held, w/o being moved since 2018, conveys the magnitude of conviction BTC Holders have in BTC as Digital Gold.
Read 7 tweets

Related threads

Profile picture
Yago
@EdanYago
#Bitcoin TWANG Theory 2020 - To the moon.

How the Bitcoin bull-run will play out...

...thread, bad news first 😟
Bad news: #Corona Virus is a global shock, possibly the worst in our lifetimes. Entire economies are shutting down, and it will get exponentially worse, before it get's better.
Investments are getting demolished. Companies will shut down. People will lose their jobs.

What will this do to BTC price? Most BTC holders are millennials, many of whom are going to need cash. What do you think they will sell?

...crypto.
Read 16 tweets
Profile picture
Crypto Entropy
@Crypt0Entropy
$BTC Daily - Pretty straight forward. This is a textbook area to long as a swing trader. People wait patiently for this opportunity. You enter the long, with proper R:R on the trade; adhere to the stop-loss. That simple. This is as solid an entry spot for longing as possible #btc
$BTC Support level currently at still looks fantastic for a swing long. We look for clues to give our bias. Bias here clearly favors long. Set a tight stop loss of a close below 7700 & play the math game here. R:R is your friend. #btc #bullishSwingPlay
People are freaking right now. But remember; anything to and above 7700 is just fine for now. Keep calm and let the numbers be your emotional control.
Read 15 tweets
Profile picture
Vijay Boyapati
@real_vijay
1/ The #Bitcoin block reward halving is less than a year away. How does the halving interact with Bitcoin's recurrent hype cycles, is it the cause of Bitcoin bull markets and what can we learn from past halvings?

Let's explore these questions in a thread 👇
2/ Every ten minutes (approximately) a fixed number of bitcoins are produced by #Bitcoin miners to compensate them for their job of verifying and ordering transactions. Because miners operate marginal businesses they tend to sell most of their mined bitcoins to pay their expenses
3/ Miner selling creates a constant downward pressure on #Bitcoin's price. Without new money entering the market, Bitcoin's price would decline.

At a BTC price of $10,000 approximately $14 million dollars must enter Bitcoin to offset the downward selling pressure.
Read 10 tweets
Profile picture
justfive
@crymeaCOIN
$BTC #Bitcoin THREAD #3 (2019/05/30-)
--------------------------------------------
$BTC #Bitcoin Update

-Prev update for reference
-Consolidating @ 1st target. Still @ LTF res around W1 open (after min retrace to Jul '18 hi)
-LTF HL is good, but <8815 lvl may allow long (HTF bias) @ support of prev range hi
-My next cookie area if HTF continuation is in gray
$BTC #Bitcoin Update

Continuing updates here from this thread ()

-Nice wicks into marked bounce area
-Still favor MTF lvl over HTF re bearish signal rn
-Lost W1 open w/ confluence of LTF/MTF resistance and therefore area to watch for potential rejection
Read 98 tweets
Profile picture
Trading Room
@tradingroomapp
$BTC vs $USD pairs

How to play?

BTC Up-Trend = Play USD Pairs

BTC Down Trend = Play BTC Pairs

BTC sideways = Play Both

BTC indecisive = Be selective & be prepared to jump either ways on short notice

This is relevant if #Bitcoin Dominance is high & rising up

Thread / 2
If #Bitcoin dominance is diminishing & on its way down, we can play:

$BTC Up-Trend = Up-Trending ALTs with stronger trends than BTC can offer higher profits in USD terms. You get the benefit from BTC up trend + ALTs uptrend

Thread / 3
If #Bitcoin dominance is diminishing

#BTC down trend = Play BTC paired ALTs with strong up-trends. This will help you to beat negative BTC returns & accumulate more #Bitcoins

#BTC sideways = Play whatever is trending

#BTC indecisive = Be prepared to jump either ways

Thread/4
Read 9 tweets

Trending hashtags

#Bitcoin #BitcoinSV #long #BitBox #TheWorldNeedsMoreCowboys #RaspiBolt #bitcoin #fractionalreservebanking #HODLing #fiduciaries #btc #bitcointalk #CommonSense #Wyoming #COVID19 #rehypothecate #hodling #LightningNetwork #BTC #WinWin #DCR #Decred #Fidelity #LotsToDo #gold

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!