Bitcoin’s bearish structure Over the last few weeks, there have been many concerns raised about the future of the cryptocurrency. These concerns have led to speculations regarding its future trajectory. One of these points towards bottoms at as little as $25,000. A recent on-chain analysis took to social media platform X in order to explain that Bitcoin falling to $25,000 was an unlikely scenario during the current cycle.
The Electrical Cost Model Indicates Bitcoin’s Bottom Potential
Ted Pillows posted a message on X for the 6th of June. implied Bitcoin’s price may continue to fall before an official bear market bottom can be established. This hypothesis is based upon the Bitcoin Electrical Costs model.
The model, which is based on the amount of electricity needed to mine BTCs new ones, estimates Bitcoin’s production costs. The metric, which is used because mining tends to be energy intensive, can often serve as an indicator of Bitcoin’s value. It is the price that miners will be able to sustainably mine Bitcoins over time.
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Pillows stated that, in line with the historical data, Bitcoin bear markets never fell below this Electrical Cost despite severe declines during those periods. In fact, historically bear markets often find bottoms at this critical price level.
Pillows pointed out that Bitcoin’s current Electrical Cost sits at approximately $48,694 — a threshold still somewhat far from Bitcoin’s current market price. The analyst believes that this indicates that BTC is still undervalued. could find support Near $50,000 if current economic conditions continue.
Pillows, in its analysis, did highlight a caveat, saying that an exceptional global event would be required to disrupt this support zone. The Bitcoin price might temporarily be below the estimated cost of production if the world was hit by an extreme pandemic like COVID or a severe recession.
Silent BTC accumulation on Binance is underway as outflows steadily climb
Analyst CryptoOnchain published a Quicktake on CryptoQuant. highlighted Bitcoin is experiencing a strange contradiction. Binance is currently experiencing BTC accumulation, according to Binance’s on-chain analysts.
The analyst noted that technical indicators — notably, the RSI (14) and the EMA50/200 — are telling a clearly bearish story. RSI readings have, for example fallen to extreme levels around 6.4. The EMA50/200 displays a “Death Cross” pattern.
At the same time, Binance’s Exchange Netflows reads as negative (-0.58σ), indicating that Bitcoin is leaving Binance consistently—an event that further suggests its holders are accumulating BTC rather than simply panic-selling. CryptoOnchain then explained that a squeeze is still imminent, given the large Open Interest.
BTC’s price is around $602,388, which represents a nearly 3% increase in the past 24-hour period.
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Featured Image from iStock and chart from TradingView
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Source: www.newsbtc.com
