Crypto Industry News:
Bitcoin is about to experience its greatest downturn ever recorded. At the time of writing, BTC mining difficulty is 19.93 trillion and is expected to decline by 27.04% today. In Bitcoin mining, the difficulty of the network is the parameter that maintains a consistent average time between BTC blocks.
The difficulty parameter is a metric that shows how difficult it is to mine a Bitcoin block. The higher the difficulty level, the more computing power it takes to find the block.
When the difficulty of mining online is lower, it becomes much easier for Bitcoin miners to find the blocks. The difficulty that increases with hashrate means that the interested party will have to spend enormous amounts of resources in order to break into the system.
The upcoming shift in Bitcoin's difficulty comes at a time when Chinese miners are told to operate elsewhere, and much of the computing power was turned off last Monday. During the last BTC difficulty change at block 687 456 on June 13, 2021, the global hashrate was around 142.68 (EH / s).
From block height 687,456, the BTC hashrate dropped by 39% to 86.5 EH / s. The Bitcoin network difficulty has doubled ahead of the upcoming 27% decline expected today.
The biggest decline in BTC's history so far has taken place on October 30, 2011, the day before Halloween.
At that time, the difficulty dropped by 18.03%, with the BTC 151,200 block high, while the global hashrate was only 8.61 (TH / s). From a certain perspective, today a single next-generation Bitcoin miner, created by Microbt or Bitmain, has a computing power of around 100 TH / s.
Technical Market Outlook:
The BTC/USD pair has hit the level of $35,903 and then the rally was capped as the Bearish Engulfing candlestick pattern was made. The market is back to the consolidation zone as the new local low was made at the level of $33,967. The momentum is decreasing and it is hovering around the neutral level of fifty points. Please notice the price is approaching the short-term trend line support as well. Any violation of the level of $32,565 will likely push the momentum back into the negative territory. The key mid-term technical support is still located at $29,187.
Weekly Pivot Points:
WR3 - $41,360
WR2 - $38,888
WR1 - $37,348
Weekly Pivot - $34,961
WS1 - $33,339
WS2 - $30,861
WS3 - $29,475
Trading Recommendations:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
