Bitcoin 'Difficulty' Adjustment May Trigger $35,000 Re-test

Bitcoin bulls have been impressive, and credit needs to be given when it is due. After breaching $30,000 on June 21, BTC has maintained a steady position above the range. A positive sentiment is brewing in the industry, and chances are likely we will witness another yearly high. A correction is still possible in this bearish market, but now other bullish factors are piling on as well. In this article, we will take a dive into the next ‘difficulty’ period for Bitcoin, which may allow further bullish behavior.

Bitcoin ‘difficulty’ in line: Thumbs up for price?

Now fundamentally, this is somewhat of a negative update. Bitcoin network difficulty is due to a decrease during its impending readjustment on June 29. It is touted to be the 2nd largest drop of 2023, estimated at around -3.15%. However, for miners, it is an ideal situation. A decrease in BTC difficulty means it is easier for miners to solve equations to receive block rewards. Now, a higher spot price of BTC, with reduced difficulty on the blockchain network, permits higher incentives for miners to keep mining. For the asset price, that is possibly a win-win situation.

Source: btc.com

In recent news, Riot Platform, one of the largest Bitcoin mining companies in the world, has made a major purchase of 33,280 mining rigs from MicroBT. The total cost tallied up to $163 million, as most of these organizations are ramping up their setup. However, the delivery isn’t scheduled until December 2023, which would allow the organization to prepare before the halving event in 2024. According to ycharts, the current network hashrate sits at 364.33 TH/s/.

Back to Price Action

Source: BTC/USDT on Trading View

Without losing track of the current situation, a negative difficult adjustment might actually be beneficial in the short term for BTC. With volatility favoring a bullish outlook, a push above $32,000 could be in the cards for the largest digital asset. As illustrated in the chart, there is a lack of resistance between $32,500-$35,000, which propagates the perfect bullish setup for BTC. It should be an interesting period for Bitcoin in the short term, and investors can be on the lookout for a profitable trading session.

  • bitcoin
  • Bitcoin Difficulty
  • Bitcoin Hashrate
  • btc

Comments

Post a Comment

Popular posts from this blog

Immutable and MetaStudio Announce Partnership to Enhance the Gaming Metaverse

Image
Braga, Portugal, May 22nd, 2023, Chainwire MetaStudio , a renowned Portuguese game studio, has announced a new partnership with Immutable , a leading Ethereum Layer 2 scaling solution provider, aimed at transforming the gaming metaverse. MetaStudio has been recognized for its innovative games and games-as-a-service offerings, along with their unique non-fungible token (NFT), Rune Realms , which offers holders a chance to partake in a 10% revenue share in the studio's earnings. By integrating with Immutable's Layer 2 blockchain infrastructure, MetaStudio can provide players with a dynamic gaming experience and unique benefits such as zero gas fees for peer-to-peer trading and secure ownership of in-game assets. Immutable is an ideal partner for us," said Carlos Domingues, CEO of MetaStudio. "Their Ethereum Layer 2 solution enables us to offer our players genuine ownership of their in-game assets and the ability to profit from their gameplay. And their upcoming passport...
Read more

Bitcoin $30K bets greet FOMC as analyst warns over long liquidations

Image
Bitcoin may celebrate no matter what the Fed decides on interest rates, but the extent of longs that would be liquidated below $20,000 has one analyst worried. Bitcoin (BTC) may “take out shorts” to crack $30,000 during the day’s key United States macroeconomic policy updates, analysis says. As bets pile up over how BTC price will react to the Federal Reserve’s decision on interest rates, $30,000 is in sight — but a drop to below $20,000 is not off the table. Trader plans $30,000 profit-taking Bitcoin is hours away from what popular trader Crypto Tony calls “one of the most anticipated” Fed meetings ever. The Federal Open Market Committee (FOMC) will decide on how to tweak baseline Interest Rates on March 22, amid suspicions that the ongoing U.S. banking crisis has disrupted policy. From ongoing rate hikes forecast just last month, Markets are now considering the chances that the Fed will pause the cycle, data from CME Group’s FedWatch Tool shows. Fed target rate probabilities chart. ...
Read more

Bitcoin payments exec shares adoption challenges in the Philippines

Image
Pouch founder Ethan Rose said that they've managed to convince 400 businesses to accept Bitcoin in the Philippines. As many developments within the space show how far the Bitcoin (BTC) community has come, an executive from a BTC payment provider shared how in other parts of the world, adoption may still be in its early stages.  At the BTC Prague event, Cointelegraph reporter Joseph Hall interviewed Ethan Rose, the founder of Pouch, a wallet service that supports the Bitcoin Lightning Network in the Philippines. The duo spoke about the state of adoption in the country and how the Pouch team is trying to introduce Bitcoin to merchants on the island of Boracay, a popular tourist hotspot in the country.  According to Rose, their team has already managed to onboard around 250 businesses within the island and 400 businesses in the country. Their team is working to promote Bitcoin adoption in the country by offering merchants another way to attract customers. “They're not really...
Read more