Thread by @mjdsouza2

1) The state of #Bitcoin: May 10th BTC corrected ~20% & caught support at its 200 DMA. $10,000 is being tested again. Each retest eats away at Overhead Supply. What we are witnessing is BTC Technicals trying to prove itself as demand over powers sellers attempting to keep it down

2) Many havnt noticed yet but 30%+ of the mining network has shut off Post Halving. New BTC is getting allocated to more efficient miners who can hold - a far more fertile environment for BTC to rally when solely analyzing the Supply Side.

What's to come for Miners & Difficulty?

3) It is critical to understand how Difficulty is calculated & how projections from these Difficulty Calculators are determined. Difficulty adjustments are determined by time required to mine the previous 2016 blocks. These calculators are lagging indicators of future Difficulty.

4) The Network is setup to mine blocks every 10 mins. If a Difficulty window - 14 days (2016 blocks x 10 mins) on average mines blocks longer than 10 mins then Difficulty favorably adjusts. If blocks mine in 11 mins on average over the 14 days then Difficulty will adjust -10%.

5) If Hash Rate remains at present levels & Block Times remain constant Difficulty is estimated to adjust in total about ~13% between this & the next Epoch - which reflects the immediate impact of Halving. Measuring the past 3 days rather than 14 days is a better future indicator

6) Miners are going to receive margin relief from the Difficulty Adjustment. Bitcoin continues to show strength & looks ready to take out $10,000 & test the key $10,522 level. This may temper future shut offs. The Demand Side - Fund & Retail driven buying is clearly strong.

7) In a market, only 1 thing matters: Supply & Demand. Never fight the present strongest force that drives price & direction. In Equity Markets, from 2009-2019, it was QE/Fed Printing pushing up Stocks & the past 8 weeks, again, the Fed has pushed up Stocks. Opinions dont matter

8) In #Bitcoin, the weakness in the Global Macro & discretionary/reckless spending from the Fed is Brewing a Perfect Storm in BTC. Our Financial System has an uncertain Monetary Policy - BTC has a certain Monetary Policy. Billionaires, Funds & Retail are taking notice & positions

9) The Nasdaq is Positive for the Year but Gold has continued to show immense strength. Gold signals FEAR. I will not fight the price action in the Nasdaq but indexes near highs coupled with Gold rallying with strength is not symbolic of a healthy market.

10) If Bitcoin can remain decoupled from US Equities & the market treats it as Digital Gold, 2020/2021 should be an amazing cycle for BTC. Always follow the present strongest force as that drives market direction - Presently, that is the Demand Side fueled by Funds & Retail Money

11) 5 days ago we shared our expectation on Hash Rate & Difficulty Adjustment w/ our Mining Clients. They were able to secure Mining Rigs for immediate install & July Batch s19 pros. s19 pros are now sold out thru Sept. Our clients are positioned to mine after the difficulty drop

12) We support Small, Mid & Large Miners at our US Facility. We provide a turn-key solution offering mining rigs on-site so miners are up & hashing within 2 business days. We manage the rigs & the Bitcoin mines directly to your wallet.

For more Details: blockwaresolutions.com/contact

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I appreciate the education from .@bitentrepreneur of @officialpoolin, @thomasheller_ of @f2pool_official & David Steinberg of Navier.

@Xentagz @PrestonPysh @_CryptoCurator @scottmelker @NicTrades @ToneVays @cburniske @nlw @stephanlivera @kyletorpey @krugermacro @APompliano