Bitcoin Faces Support Test Near $61,000 as Market Volatility Persists
Bitcoin (BTC) faces the risk of dropping below $61,000 as it tests familiar trendlines for support, resulting in a price decline.
Despite low-timeframe volatility affecting liquidity, BTC lacks significant upward momentum. Traders closely watch the 100-day simple moving average (SMA) and short-term holder realized price (STH-RP) as crucial support levels in a bull market. Last week, BTC briefly dipped to $56,500 but did not violate these levels for an extended period.
Currently, the 100-day SMA and STH-RP stand at $61,200 and $60,100, respectively. Skew, a prominent trader, underscores the importance of these levels, especially the 100-day SMA and the monthly open at $60,600, on higher timeframes. Confirmation of strong demand requires evidence of sellers being absorbed.
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Bitcoin’s price movements also impact the network’s fundamentals. The mining difficulty, reflecting the computational effort needed to mine new BTC, is set to decrease by 5.5%, the largest downward correction since the end of the 2022 bear market. Despite this, the difficulty remains at an all-time high of 83.23 trillion.
Analysts note a decline in the hashrate, another crucial mining metric. However, what matters for miners is the difficulty level, determining their mining output per unit of computational power. Difficulty adjustments occur roughly every 14 days. Assuming a -7% adjustment, the difficulty hashrate would be around 585 EH/s. Despite the drop, the hashrate remains above earlier predictions, signaling ongoing mining activity.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
