Bitcoin price down 1.5% to $26,244 today as crypto market suffers headwinds A possible US debt default,
The current price of BTC represents a loss of 4% in one week and over the last month, although the native cryptocurrency is still up 58% since the beginning of the year.
And despite today’s slip, Data Shows Bitcoin Mining Difficulty Has Reached All-time HighAs a sign that more miners are looking to accumulate BTC during the ongoing bear market.
And with bitcoin reaching an all-time high for volume that hasn’t moved for at least 10 years, it looks like most serious market players are biding their time and sitting around waiting for the next bull run. Are.
Bitcoin price prediction scrutinized as mining difficulty hits all-time high
After an overnight decline, it looks like BTC has begun a slight recovery this morning, with its indicators showing some signs of regaining momentum.
The cryptocurrency’s Relative Strength Index (purple) has resurfaced after hitting an oversold position of 20 yesterday, trending above 40 in a sign of incoming buying pressure.
On the other hand, its 30-day moving average (yellow) is still sliding, though not as sharply as it was yesterday, something that probably indicates a better performance in the coming days.
In this regard, it is encouraging to note that the support level around $26,100 appears to be holding this morning, with BTC refusing to drop any further below.
Of course, with the market engulfed by the threat of a US debt default, it remains to be seen whether bitcoin will hold this support or fall further.
On the positive side of the equation, bitcoin’s fundamentals remain as strong as ever, with the above ATH for mining difficulty highlighting how its network remains in poor health.
Not only has the difficulty of mining hit new highs in recent times, but so has bitcoin hashrateWhich is an indicator of how much computing power is being used to secure the cryptocurrency’s network.
It is worth pointing out that, unlike some altcoins (such as Solana), bitcoin has never suffered a network outage, a fact that has helped solidify its position as the safest cryptocurrency to invest in. have helped.
And while it continues to suffer along with the broader market (and the stock market), signs suggest that many investors – including whales and miners – are currently in accumulation mode, preparing for the next big rally.
For example, Miners Have Started Hoarding Instead Of Selling Bitcoin (Their net outflow turned negative), while BTC balances on exchanges have hit a one-month low of 2,302,913.
On top of this, the market has also hit a new all-time high for now Amount of BTC that hasn’t moved in at least ten yearsas well as for Number of wallet addresses with at least 1 BTC,
gradual recovery
Such accumulations provide some positive news in contrast to the current negative focus on Washington, while there has been an increasing number of positive updates in recent days regarding national economies.
For example, The IMF has recently said that Britain will avoid recession this yearReversing the first, the more negative the forecast.
Just like that, Eurozone avoiding recessionn In the first quarter of the year, creating a feeling that the global economic picture is becoming a bit more encouraging.
It will take time for such minor corrections to translate into significant gains for bitcoin and other cryptocurrencies, but it is clear nonetheless that things are generally improving rather than getting worse at the moment.
Needless to say, this will depend on the US resolving its debt ceiling crisis, although the fact that it has resolved all previous similar crises would suggest that the latest one will meet a similar positive end.
From there, bitcoin could begin a gradual upward move for the rest of the year, retracing back to $27,000 and $28,000, and recovering further in the following months.
Looking ahead, the next bitcoin halving – sometime in April or May 2024 – could inject some much-needed momentum into the market, with BTC potentially rallying massively in the weeks leading up to the event.
It’s possible that BTC will need some big adoption and investment news from big players to reach new record highs, but with its core investors and the market continuing to accumulate cryptocurrency, it may have another chance in the not too distant future. It is the foundation of a big rally.