RIOT Potentially Missing Bitcoins from Mining OperationsI've been bearish on RIOT since around mid April 2021. Since then, a few technical formations have occurred and I've detected potentially suspicious activity at Riot Blockchain. Main price objective = $2.
Technical Observations:
1. Bearish flag formation from May 7th, 2021 to September 17th, 2021. The break down occurred on September 20th, 2021.
2. Bearish flag (from point 1 above) and pole (marked as line segment X) completed. The next pole (marked as line segment X', which is a clone of line segment X and then translated) could be forming. Line segment X' points to a target of $0.00. However, as mentioned at the start my main price objective is $2.
3. Declining trend line starting February 17th, 2021 to present day.
4. Death cross on September 10th, 2021.
5. We are in month #18 since the BTC block reward halving that occurred in May, 2020 (prolonged bull run). I anticipate this bull cycle to end within 90 days from the date of this publication.
6. Dark black ghost bars are the candlesticks from the previous bear market trend that began on December 19th, 2017 for this ticker. This serves as a potential trajectory of where we could be headed in this current down trend. Notice the dark black bars have been setup to end at $2 based on adjusting the vertical stretch property.
Fundamental Observations:
1. Literally almost all cryptocurrencies have pumped 10x, 20x, 50x, 100x, 200x, 1000x, and in a few cases well beyond 1000x multiples. This is sheer insanity and generally unsustainable.
2. Tether keeps pumping Bitcoin prices with nonstop increasing supply. Generally, when Tether stops printing, Bitcoin is allowed to take its natural course. Also, word is getting out that Tether might even be a scam/fraud. The downfall of Tether could potentially destruct 80% to 90% of the cryptocurrency market. Obviously, RIOT would become one of many victims due to a Bitcoin price collapse.
3. RIOT's business model requires to upgrade equipment for life every 2 to 4 years to stay competitive with its mining operations. This is very capital intensive.
4. RIOT's break even cost will rise forever. This is unsustainable because RIOT would need to rely on Bitcoin prices to rise forever if it were to ever become profitable.
5. RIOT is potentially missing Bitcoins from mining operations. Have a look at my mini report and carefully follow my mathematical argument. You will notice the argument follows a structure known as deductive reasoning in logic.
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This report is far from being a thorough investigation into the company. My main focus was on the potential possibility that RIOT could be missing Bitcoins from its mining operations. Constructive criticism and rebuttals are welcome.
