Cryptocurrency mining operations in China sell excavators by weight instead of a piece. The sale was reported by the local Chinese crypto outlet 8BTC.
The cryptocurrency market has experienced widespread declines over the past week, and Bitcoin's price has dropped to $ 4,300 per unit. This resulted in a similar decline in profitability in the mining industry, which forced Chinese operators to sell their mining equipment at a loss. The financial portal reported that excavators are sold "per kilogram", citing the post created by F2Pool on the Weibo platform.
It seems that cryptographic miners are particularly happy to sell older models, including Antminer S7, Antminer T9 and Avalon A741, because they have achieved their "closing price". According to the local Chinese outlet of Tencent News, revenues from mining are no longer sufficient to cover the cost of electricity and other related costs.
The situation on the market has had the most impact on small and medium mining companies in the Chinese regions of Xinjiang and Inner Mongolia. In these regions, some mining machines are sold for only 5 percent of their original value. The excavator bought last year for the price of $ 2,885 is sold for just $ 144.
Earlier this month Bitmain, a bitcoin mining giant, announced plans to reach local mining farms in the coal-rich province of Xinjiang and installed about 90,000 Antminer S9 devices in the region. Bitmain's move is considered strategic in the face of the "computing power war" associated with Bitcoin Cash.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has made a new low at the level of $3,440 and bounced towards the level of $4,017. There is a clear bullish divergence between the momentum and the price, so there is a possibility of a bounce higher towards the level of $4,600. Any violation of the black dashed trend line will be the first sign of a bullish breakout. The larger time frame trend remains bearish.
