The average cash flow of miners has turned into a resistance state. The local trend of BTC may have peaked.

On April 20, U.S. crude oil futures - West Texas Intermediate (WTI) fell into negative value for the first time in history. The price of May crude oil contract plummeted 300% to close at -37.63 US dollars per barrel, and the intraday low reached -40.32 US dollars per barrel.
Market analysts believe that the recent oil price plunge is a manifestation of oversupply in the oil market. The Organization of Petroleum Exporting Countries (OPEC) and major oil-producing countries will not start production cuts until May 1. However, due to the recent impact of the epidemic, demand has dropped sharply, resulting in a surge in inventory, a serious imbalance between market supply and demand, and a sharp drop in oil prices. In addition, the May contract will be delivered at 02:30 am on the 22nd Beijing time, and a large number of traders sold before this deadline.
On the other hand, although the cryptocurrency market has also seen a general decline, the impact of the crude oil crash on the cryptocurrency market is relatively small. Currently, BTC is stable at around $6,900, down 3% on the day.

However, the future trend of BTC may not be optimistic. John Bollinger, the inventor of the Bollinger Band indicator, said that although the plunge in oil prices did not lead to a sharp drop in BTC, BTC is expected to experience significant fluctuations, and BTC and altcoins are currently approaching a "squeeze zone."
Cryptocurrency trader Byzantine General also expressed the same view. Byzantine General said that the average cash flow indicator of miners (predicting when miners are profitable) can show the price trend of BTC. In December 2018, when BTC fell to $3,150, analysts were sure that it would continue to fall, and some believed that the bottom price of BTC would reach $2,000 or even lower. The average cash flow indicator of miners showed that BTC had bottomed out, and the subsequent rebound of BTC in 2019 confirmed the importance of this indicator.
This year, for a long time (until Black Thursday), the average cash flow of miners has been in a state of support, but now the indicator has begun to turn into a state of resistance. If historical precedents are followed, this means that BTC is likely to have reached a local peak and the current rebound may have ended. (Golden Finance)