Bitcoin has risen nearly 28% this quarter, and mining has become profitable again

The market is once again volatile as the Bitcoin price continues to struggle to reach the $12,000 level. Much like last weekend, the week started out positively with the digital asset surging to $12,000, but then immediately dropped $500 before bulls seemed to want to start testing this high again.
From a technical perspective, Bitcoin's 14-day relative strength index (RSI) rose above 70, a level that would be considered overbought if exceeded. Matt Maley, chief market strategist at Miller Tabak & Co, said, "It looks like it wants to test the 2019 high of $13,800 before seeing a meaningful correction to eliminate this overbought condition."
But for others, the first major milestone Bitcoin has to break is the all-time high of $20,000, which is a clear sky for the digital asset. "The $10,000 level has represented a strong psychological barrier for Bitcoin over the past few years," said Quantum Economics founder Marty Greenspan. "Now that this barrier has been broken, there are no major resistance levels on the chart until the all-time high of $20,000."
Bitcoin has risen nearly 28% since the start of the quarter and more than 60% so far this year. Cryptocurrency market analyst Rekt Capital said the Bitcoin bull run is "confirmed."
He said, “A strong 12-month close above $14,300 by the end of 2020 would still put the market on track. A 12-month close above $14,300 and Bitcoin would be well positioned to reach new all-time highs in 2021.”
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The trend of Bitcoin hoarding has been strong, and the number of people hoarding Bitcoin has increased by about 4 million in the past year. According to IntoTheBlock, as of August 9, a total of 20.47 million addresses held 11.51 million Bitcoins in the past year.
Further bullish for bitcoin, BTC is beginning to flow to cryptocurrency exchanges, which have been declining since May.
“Bitcoin miners are the biggest whales in the market,” trader Cole Garner noted. “When miners send Bitcoin to exchanges, they want to sell. This is a leading indicator of a local top.”
In addition, the upward trend in Bitcoin prices has made mining companies profitable. Currently, the cost of producing Bitcoin is around $7,250. Due to the increase in network fees and the increase in transaction volume, mining companies' revenue actually increased by 7% last month. The average daily fee increased by 300% from the end of last month.

Chart provided by analyst Charles Edwards

Meanwhile, mining machine producer Canaan saw its share price surge 34% in July, while Riot Blockchain’s share price rose 10%. However, due to an internal struggle for control between the company’s co-founders, which could put affected miners in a difficult position, Bitmain, the largest miner manufacturer, delayed shipments by three months, postponing orders for June and July to September and October. (Baijiahao)