Bitcoin Mining Challenge Threatens Biggest Twist From 2022 As BTC Price Sees $60k
Bitcoin (BTC) threatened a $61,000 breakout on May 9 as established trends found a new support test.
BTC price continues to bear pressure on bull market support
Data from Cointelegraph Markets Pro and TradingView shows that BTC price is moving lower to erase a one-week reversal.
With lower timeframe volatility taking a toll on the order book, BTC/USD has generally lacked bullish momentum, and now, the 100-day Simple Moving Average (SMA) and Short-Term Holder Perceived Price (STH-RP) are back on the radar.
As Cointelegraph reports, these are classic bull market support levels, with last week's brief dip to $56,500 not breached for long.
The 100-day SMA and STH-RP – the latter referring to the general cost base of Bitcoin speculators – stood at $61,200 and $60,100, respectively, at the time of writing.
In his latest commentary on X, popular trader Skew described the 100-day SMA and monthly open at $60,600 as “very important” on the higher timeframes.
“There are some 100BTC bids stacked here, but they need to see evidence of absorbing sellers to get a strong convergence of interest,” he wrote overnight.
Data from the tracking resource CoinGlass has confirmed a cloud of bids below $61,000, which Bitcoin is yet to challenge on this day.
“Clearly here, someone is trying to sell for cash, and the price will go down,” Skew previously summed up.
“Watch this because eventually someone will take the other side (bid) and demand this liquidity.”
Bitcoin mining hash rate, regression problem
Meanwhile, recent BTC price movements have weighed on network fundamentals.
RELATED: Bitcoin Revenue Falls to 10-Year Lows After $74K All-Time High
According to data from BTC.com – the largest single downward correction since the end of the 2022 bear market, Bitcoin mining difficulty was about to drop by 5.5% at the time of writing. At the time, BTC/USD was trading below $20,000.
The difficulty is currently maxed out at 83.23 trillion.
Discussing the current landscape on X, mining analytics label Pennyzer pointed out that hash rates are already on the way down.
“Hashret seems to be coming down. However, what matters to miners is the difficulty, not the network hashrate. Miners will not earn more bitcoins per EH/s until the problem is fixed downwards, and this will happen every 2016 blocks (~14d),” he wrote on May 8.
“Assuming we get a -7% correction, that puts the ‘hard hashrate' around 585 EH/s. Referring to my post-halving forecast, this is still above the 560 EH/s estimate given the current $50 hash rate.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
