Bitcoin Mining Difficulty at Risk of Biggest Dip Since 2022 as BTC Eyes $60K
2 min read
Bitcoin Mining Difficulty at Risk of Biggest Dip Since 2022 as BTC Eyes $60K
On May 9, Bitcoin faced the risk of a breakdown below $61,000 as it tested familiar trendlines for support. The price of BTC gradually declined, erasing the gains it had made in the previous week. Despite low-timeframe volatility affecting order book liquidity, BTC/USD lacked significant upward momentum. Traders and investors were closely watching the 100-day simple moving average (SMA) and the short-term holder realized price (STH-RP), which are important levels of support in a bull market. At the time of writing, the 100-day SMA and STH-RP stood at $61,200 and $60,100, respectively.
Popular trader Skew described the 100-day SMA and the monthly open at $60,600 as crucial levels on higher timeframes. He observed that there were 100BTC bids stacked at these levels, but he wanted to see evidence of sellers being absorbed before confirming strong demand. Data from CoinGlass, a monitoring resource, revealed a cloud of bid liquidity just below $61,000, which Bitcoin had yet to challenge.
Skew previously noted that someone was intentionally pushing the price lower to attract liquidity for selling on price bounces. He emphasized the importance of monitoring this situation because eventually, someone would take the other side of the trade and test the ask liquidity.
The recent movements in BTC price had negative implications for the network’s fundamentals. At the time of writing, Bitcoin mining difficulty was about to decrease by 5.5%, marking its most substantial downward adjustment since the end of the 2022 bear market when BTC/USD was below $20,000. Currently, the difficulty is at an all-time high of 83.23 trillion.
Mining analysis account Pennyether pointed out that while the hash rate was dropping, what really mattered for miners was the difficulty level, not the network hash rate. Miners would not be able to mine more Bitcoin per EH/s until the difficulty adjusted downward, which typically occurs every 2016 blocks or approximately every 14 days. Assuming a 7% adjustment, the expected difficulty rate would be around 585 EH/s. Despite the declining hash rate, this was still above Pennyether’s estimate of 560 EH/s based on the current hash price of $50.
Bitcoin faced the potential of breaking below $61,000, and traders were closely monitoring the 100-day SMA and STH-RP as critical support levels. Bid liquidity below $61,000 and the intentional price manipulation by certain individuals was a cause for concern. The network fundamentals were also impacted as the mining difficulty was set to decrease, potentially affecting miners’ ability to mine more Bitcoin.
The declining hash rate might be concerning, but it’s also an opportunity for the network to adjust and grow stronger.
The decreasing mining difficulty could have an impact on miners’ ability to mine more Bitcoin. Let’s hope it adjusts smoothly.
This is concerning! Bitcoin’s price decline is erasing all the gains it made in the past week.
The recent developments in Bitcoin’s price and network fundamentals are giving me a sense of unease. 😰
It’s disheartening to see the intentional manipulation of Bitcoin’s price. We need a fair and transparent market.
Wow, Bitcoin’s price has been on a rollercoaster lately! It’s interesting to see how it’s testing those key support levels.
It’s fascinating to witness the continued growth of the crypto market. Bitcoin’s journey is far from over!
It’s frustrating to see someone purposely pushing the price down to attract selling liquidity. That’s not good for the market.
The volatility in the market can be nerve-wracking, but it also presents exciting opportunities. Let’s stay optimistic! 🌟💰
It’s worrying to see Bitcoin struggle to maintain upward momentum. Will it break below $61,000?
It’s reassuring to see traders and investors closely monitoring the 100-day SMA and STH-RP. Knowledge is power in this market!
It’s crucial to pay attention to the bid liquidity and intentional price manipulation. Stay vigilant, fellow Bitcoin enthusiasts! 🚨🔍
The decline in hash rate is definitely something to watch out for. But as Pennyether mentioned, the difficulty level is the key factor for miners.
Bitcoin is a resilient asset, and I have faith that it will weather this storm. Let’s keep an eye on those support levels!
I’m impressed by the growth of Bitcoin’s network. It’s exciting to witness the evolution of this technology.
The fluctuations in Bitcoin’s price can be nerve-wracking, but they also present opportunities for those who are patient and strategic.
The upcoming adjustment in mining difficulty is a reminder of the dynamic nature of the cryptocurrency ecosystem. Adapting is key!
The 100-day SMA and STH-RP levels are crucial for Bitcoin’s performance, but they’re being tested. Not a good sign.
Bitcoin’s struggle to maintain upward momentum is making me question its overall bullishness. 😩
With the potential break below $61,000, I’m worried about Bitcoin’s overall performance. Will it recover?
With every challenge comes an opportunity. Let’s keep a positive mindset and trust in the potential of Bitcoin.
It’s fascinating how bid liquidity is stacking up just below $61,000. Will Bitcoin challenge it?
Despite the challenges, I believe in the long-term potential of Bitcoin. It has overcome obstacles before, and it will do so again.
Bid liquidity below $61,000 and price manipulation are making me doubt Bitcoin’s stability. What’s happening?
Bid liquidity and intentional price manipulation are creating uncertainty in the market. I don’t like where this is heading.
The mining difficulty adjustment is an important aspect to consider for the sustainability of the Bitcoin network. Let’s hope for a smooth transition! ⚙️🔄
Despite the potential challenges, I’m confident Bitcoin will find its way back up. It has proven its resilience time and time again. 📈💪
The network’s fundamentals are taking a hit with the upcoming decrease in mining difficulty. Bitcoin’s stability is being compromised.
Let’s not forget that volatility is a natural part of the cryptocurrency market. Stay calm and trust in the fundamentals!
I appreciate the in-depth analysis of the bid liquidity and intentional price manipulation. It’s important to stay informed.
Skew’s observation about intentional price manipulation is concerning. We need to be aware of these market dynamics.
The intentional price manipulation is a reminder to stay cautious in this market. Do your own research and make informed decisions!
The fluctuations in Bitcoin’s price can be a bit overwhelming, but it’s all part of the game. Stay patient and focused!
Crossing my fingers for a favorable adjustment in the difficulty rate! Miners deserve the opportunity to continue mining efficiently. 💪⚙️
I’m concerned about Bitcoin’s ability to recover from this downward trend. Will it find a solid support level?
Remember to stay informed, do your own research, and make educated decisions in this ever-evolving market. Knowledge is power! 💪🔍
The decreasing mining difficulty will affect miners’ ability to mine more Bitcoin. That’s not good for the overall network.
The declining hash rate and potential break below $61,000 are raising red flags for Bitcoin’s stability.