Crypto Industry News:
The difficulty of mining Bitcoin, which is a measure of how difficult it is to compete for block prizes, has reached the highest level in the last adjustment of the network before halving occurs. The world's largest blockchain network in terms of market capitalization, corrected the difficulty of mining to 16.10 trillion T, which was close to the record level of 16.5 T, recorded in March this year.
Today's correction, which the difficulty of mining exceeded the threshold of 16 T, is also the final change before halving, which awaits us in less than a week. After halving the rewards, which will also reduce the number of newly extracted Bitcoins per day from 1,800 to 900 units, it is expected that computing power connected to the Bitcoin network will then decrease.
The difficulty of Bitcoin mining is to adapt to 2016 blocks, depending on the competition. If more people are involved in the game, the difficulty level will increase in the next correction. If the computing power is less, the difficulty will decrease.
The difficulty correction follows the rather unusual amount of bitcoin blocks mined at the end of last week, when miners registered 16 blocks in about an hour. Such a fast block production could be a sign that the current level of difficulty was too low. According to the data, the average mixing power connected to the Bitcoin network in the last seven days increased to over 119 EH / s, with the last average of three days oscillating around 125 EH / s.
Technical Market Outlook:
The BTC/USD pair has tested the technical resistance at $9,380, which is the last swing high. Nevertheless, there was a Doji candlestick pattern made at the top of the move. Still the key level of support is still seen at $8,357. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 - $11,425
WR2 - $10,480
WR1 - $9,720
Weekly Pivot - $8,578
WS1 - $7,824
WS2 - $6,750
WS3 - $5,970
Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.
