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The largest data center in the former Soviet Union, BitRiver, opened about a year ago in the Siberian city of Bratsk and most of its clients use the facility to mine Bitcoin (BTC), Bloomberg reported on Nov. 24.

The data center allows cryptocurrency miners to take advantage of cheap energy in what once used to be the world’s largest aluminum smelter. The plant was built by the USSR in the 1960s with the still-active hydropower plant to power its operations.

Cold climate, cheap energy

The data center’s location also benefits from a cold climate, allowing mining hardware to work at higher efficiency rates while cutting cooling costs.

Billionaire and president of the world’s second-largest aluminum company Rusal, Oleg Deripaska, is Bitriver’s biggest shareholder. He reportedly had the idea of building the data center about five years ago and directed his company Rusal alongside aluminum and power producer En+ to repurpose the facilities.

According to Bloomberg, Russian law does not recognize cryptocurrency mining. Because of this legal gray area, Bitriver does not directly engage in mining, but only provides equipment and technical services to its clients — including from Japan, China and the United States — operating like any other data center.

En+, in which Deripaska and his family own a 45% stake, supplies up to 100 megawatts of power to the facility, enough energy to sustain 100,000 homes. The plant is the largest hydropower plant in Russia and the data center allows it to constantly sell excess energy and diversify its client base.

BitRiver is paying for the power 2.4 rubles per kilowatt-hour, equivalent to about $0.038 without value-added tax and sells it at 3.5 rubles ($0.055) per kWh to miners. For comparison, the average price of electricity in the United States is about $0.12 per kWh.

Bitcoin miners unfazed by BTC price drop

Bitcoin and the overall cryptocurrency market saw a significant drop in price earlier this week, as BTC briefly fell under $7,000. Still, miners are seemingly keen to continue boosting their capacity.

“There is NO miner capitulation,” commented Bitcoin entrepreneur Alistair Milne on Sunday following a rise in network hash rate and expected difficulty hike. He continued: 

“They are acutely aware of the upcoming halving and are apparently unphased by the recent dip.”

As Cointelegraph reported earlier this week, German Bitcoin mining firm Northern Bitcoin has entered a merger agreement with United States-based competitor Whinstone to jointly build what will supposedly be the world’s largest mining farm.

Cointelegraph By Adrian Zmudzinski , 2019-11-24 10:04:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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