Bitcoin / USD: Technical Analysis
Bitcoin lost nearly 5% during trading last week while the rest of the top 10 cryptocurrencies lost between 6% – 12%, as the total value of the crypto market fell by $16.7 billion over the past seven days.
Bitcoin broke the support levels between $11,400 and $11,600, anytime the price will be between these lower levels, the currency is expected to resume the uptrend, however if selling pressure continues, it is likely to break the crucial $11,200 support level and return to the downside.
Some consider that the current decline of the largest cryptocurrency is similar to the calm before the storm, as prices are expected to witness huge movements in the coming period.
Bitcoin buying pressure falters
Bitcoin has been dominated by a strong bullish trend over the past few months, with the cryptocurrency rallying from multi-month lows of $8,000 to highs of $12,400 set just over a week ago.
Although the overall trend has been in favor of Bitcoin, it is currently showing some signs of weakness due to its inability to sustain above the $12,000 level.
The $12,000 level has held as a resistance level for several weeks and whenever it is breached it proves to be ephemeral, and recently Bitcoin failed to sustain the $12,400 level which pushed it down to the current price levels.
Bitcoin is currently trading at $11,400, which is a significant drop from the recent highs, and it remains unclear whether this level will continue to hold or not.
The difficulty of mining bitcoin has increased by 9% since the halving happened
According Forex brokers Mining difficulty has increased by 9% since after the halving event on May 11, after the halving event the coin faced a lot of criticism as some said miners would give up and the whole process would go into a death spiral, however after three months the Bitcoin hash rate reached a level Standard, a positive sign for the long-term direction of Bitcoin.
The data indicated that the difficulty of Bitcoin mining increased by 3.6% on August 24, and the data shows that many miners are actively mining even before the halving occurred, and the Bitcoin hash rate increased as a result of the profitability of miners in China, on the contrary, it is considered Miners are one of the sources of external selling pressure on the bitcoin price.
The event of the third Bitcoin halving boosted investor sentiment as well as confidence metallurgical Unwavering in the prospects of the first cryptocurrency.
The third halving not only has a positive effect on market sentiment but also pays to account for potential gains, the largest cryptocurrency has shown impressive growth rates over the past two halves, but how will it go this time? The graphs show several scenarios similar to those of the past two halves, and within these scenarios growth could reach $340,000 - $720,000. Of course, analysts admit that such calculations are nothing more than hope.