Crypto Industry news:
As the hash rate of the Bitcoin network continues to increase and miners accumulate more and more power, the largest cryptocurrency becomes more and more difficult to mine.
The Bitcoin network released another correction of the mining difficulty, rising by 3.2% and reaching a difficulty level of almost 19 trillion, according to data from the Blockchain explorer BTC.com.
The latest correction represents the fifth consecutive increase in Bitcoin mining difficulty since mid-July, since the difficulty rate has risen by more than 31% from around 13.7 trillion - the lowest difficulty level since June 2020.
The new positive corrections followed a series of four consecutive falls in difficulties that began with a nearly 16% decline in late May amid environmental and social concerns about Bitcoin, as well as the suppression of cryptocurrency mining in China.
Despite posting five positive corrections in a row, the current Bitcoin mining difficulty rate is still far from its all-time high of more than 25 trillion recorded in May 2021.
Bitcoin Mining Difficulty is a measure designed to reflect how difficult it is to mine a block of Bitcoins. Higher difficulty requires more processing power to verify transactions and dig new coins.
Technical Market Outlook
The BTC/USD pair has made a new swing low at the level of $39,526 and it looks like the ABC corrective cycle had been completed. The next technical support is seen at $38,261. Any violation of the level of $38,261 would likely open the road to lower levels and the downwards momentum might increase then even more. In the meantime, bulls had violated the technical resistance located at $43,607 and are heading towards the level of $44,143, which is a 50% Fibonacci retracement of the last wave down.
Weekly Pivot Points:
WR3 - $55,433
WR2 - $52,068
WR1 - $51,114
Weekly Pivot - $46,800
WS1 - $44,786
WS2 - $41,130
WS3 - $39,325
According to the long-term charts 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. The next mid-term target is seen at the level of $59,506. 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).
The material has been provided by InstaForex Company - www.instaforex.com