Bitcoin Price Prediction: Price Could Fall to $20,000

Bitcoin is now trading at $25,900, down 1.75% on Saturday in the volatile cryptocurrency market.

As bears push BTC below the critical $26,000 barrier, questions abound: is another drop to $20,000 on the horizon?

The state of Texas recently gave Riot a significant $31.7 million to suspend Bitcoin mining activities due to projected energy difficulties, further complicating the crypto scene.

Bitcoin miners in Texas are currently facing a big problem due to an ongoing power outage, which has forced them to halt their mining operations.

Texas has always been a desirable location for Bitcoin mining due to its low-cost energy resources and open regulatory climate.

Riot and Marathon Digital, two prominent Bitcoin mining businesses, have built significant operations in the state.

The power issue in Texas has worsened owing to inclement weather, causing the Biden Administration to proclaim a state of emergency regarding electricity supplies.

According to Lee Bratcher, president of the Texas Blockchain Council, Bitcoin mining activities have been reduced by more than 90%, with just vital systems staying operational due to limited power availability.

As a result, large-scale Bitcoin miners strictly adhere to these constraints.

This circumstance exacerbates miners’ existing issues, which include low Bitcoin prices, increased competition, and falling rewards following the most recent halving event.

The state of Texas has given $31.7 million in energy credits to alleviate the ongoing energy issue, effectively halting the activities of Riot Platforms and other Bitcoin miners.

This action is in reaction to a significant power shortfall aggravated by inclement weather.

The Electric Reliability Council of Texas (ERCOT) is in charge of allocating these energy credits, with the primary goal of reducing stress on the state’s power grid.

Simultaneously, it acts as a tool for Riot Platforms and other mining firms to cut operational costs.

Despite reporting losses in excess of $500 million in 2022, Riot Platforms sees these energy credits as a key financial lifeline.

Finally, the prolonged power outage in Texas is posing a huge difficulty for Bitcoin miners, causing them to cease operations, and this condition is keeping BTC down today.

Bitcoin Price Prediction 

Bitcoin is steadily rising, with the price currently hovering slightly above $26,000. Although it suggests a probable revival, the $26,500 resistance remains an impediment.

BTC’s movement has just broken through a big bearish trend, vigorously engaging with resistance territory, particularly critical points between $26,400 and $26,500.

Maintaining a consistent position above this latter level may result in a significant advance, aiming for levels near $28,000.

On the other hand, if the cryptocurrency falls below $26,500, it may see a drop, with immediate defensive lines established at $26,100 and $26,000.

Dropping below these levels may increase selling pressure, perhaps lowering Bitcoin’s value to $25,500 or as low as $25,350.

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