{"id":291059,"date":"2021-07-05T11:21:51","date_gmt":"2021-07-05T08:21:51","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2021-07-05T11:21:51","modified_gmt":"2021-07-05T08:21:51","slug":"an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# An even bigger mining difficulty drop? 5 things to watch in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28f8d1a6eee\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28f8d1a6eee\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/#Stocks_records_and_and_oil_feud\" >Stocks records and and oil feud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/#Fundamentals_arent_out_of_the_woods\" >Fundamentals aren&#8217;t out of the woods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/#BTC_price_action_spooked_at_36000\" >BTC price action spooked at $36,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/#Volume_fails_to_buoy_bull_case\" >Volume fails to buoy bull case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\/#Investor_confidence_slowly_return\" >Investor confidence slowly return<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># An even bigger mining difficulty drop? 5 things to watch in Bitcoin this week  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) starts a new week in familiar territory after a weekend of solid gains ended in a drawdown \u2014 what\u2019s in store?<\/p>\n<p>With another rally to near $36,000 under its belt, the largest cryptocurrency is showing signs of strength, but old resistance levels remain in place.<\/p>\n<p>The conditions are complex \u2014 the ongoing miner migration and associated price action have alarmed many, and Bitcoin\u2019s most accurate forecasting tools are seeing a real test. <\/p>\n<p>With fundamentals finally showing signs of life, however, bulls may finally have something to celebrate. <\/p>\n<p>Cointelegraph considers five factors at play when it comes to BTC\/USD this week.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stocks_records_and_and_oil_feud\"><\/span>Stocks records and and oil feud<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s another eerie \u201cRoaring Twenties\u201d style mood on major markets this week thanks to the S&amp;P 500 seeing new all-time highs for seven straight days.<\/p>\n<p>Encouraging economic data from the United States plus the Federal Reserve keeping interventions has pushed the equities index ever higher in recent weeks. <\/p>\n<p>\u201cMarkets are priced for the continuation of a scenario that could not be better constructed,\u201d Chris Iggo, chief investment officer for core investments at Netherlands-based AXA Investment Managers, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-04\/stocks-eye-steady-open-oil-in-focus-on-opec-spat-markets-wrap\">summarized<\/a> in a note quoted by Bloomberg.<\/p>\n<p>An interesting twist is oil, now at the center of another OPEC+ production row, which is itself gaining but sparking concerns about how much fuel will be available in August.<\/p>\n<p>With the U.S. dollar steady, it seems that the equities narrative is the likely driver going forward, this scenario traditionally helping Bitcoin price action.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/c5fb8e69-fd64-4dd9-8a41-2f10dfe980bb.png\"><figcaption style=\"text-align: center;\"><em>S&amp;P 500 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Fundamentals_arent_out_of_the_woods\"><\/span>Fundamentals aren&#8217;t out of the woods<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin may have seen its biggest-ever difficulty decrease this weekend, but even that may not be enough to steady the ship.<\/p>\n<p>At 27.94%, Saturday\u2019s decrease easily beats any that have come before, reflecting the impact of China\u2019s war on mining on the Bitcoin network. <\/p>\n<p>According to data from monitoring resource <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/btc.com\/stats\/diff\">BTC.com<\/a>, however, the next adjustment may see an even larger drop.<\/p>\n<p>As difficulty adjustments can only ever be estimated before they actually take place, and a lot can change over each two-week difficulty period, it is difficult to say just how much the metric needs to decrease to reflect the true state of the network.<\/p>\n<p>Given the latest drop, mining is now significantly more economically attractive to many current and potential participants. As such, in the coming thirteen days, more miners may well begin operating, increasing the hash rate and thus perhaps mitigating the need to decrease difficulty much further. <\/p>\n<p>A look at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/miningpoolstats.stream\/bitcoin\">hash rate activity<\/a> in recent days shows that a U-turn may have already taken place, with hash rate spiking above 90 exahashes per second (EH\/s) versus lows of 83 EH\/s last week.<\/p>\n<p>At the time of writing, however, Bitcoin is on track to lower difficulty by another 28.68%.<\/p>\n<p>\u201cAfter yesterday&#8217;s record-breaking -27.9% difficulty adjustment, Bitcoin&#8217;s difficulty is now similar to the levels after last year&#8217;s halving event,\u201d popular <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> account Dilution-proof <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/dilutionproof\/status\/1411570052936183809\">noted<\/a> on Sunday alongside an annotated difficulty chart. <\/p>\n<blockquote><p>\u201cPrice, however, is +263% higher. This illustrates how incredibly profitable bitcoin mining has become for efficient miners.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/9f71b21a-4dff-42bd-86ca-bd4c6765fb0e.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin difficulty 7-day average chart. Source: Blockchain<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"BTC_price_action_spooked_at_36000\"><\/span>BTC price action spooked at $36,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The difficulty drop at least had good timing \u2014 once in, Bitcoin price action saw a welcome boost and climbed back towards the upper bound of its trading range.<\/p>\n<p>Throughout the rest of the weekend, BTC\/USD saw little by way of resistance and added around 5% before retracing.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/105b46d8-8c0a-4fa1-9feb-090a92edd6bd.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<p>What could cap the enthusiasm further? For popular analyst Rekt Capital, two now-infamous moving averages (MAs) may be bears\u2019 best friend in the coming days.<\/p>\n<p>As Cointelegraph reported, BTC\/USD saw a \u201cdeath cross\u201d event last month. This refers to the 50-day MA crossing under the 200-day MA, an occurrence which is traditionally regarded as a bearish signal. <\/p>\n<p>In reality, \u201cdeath crosses\u201d have not always led to price losses, but their reputation remains firm this year. <\/p>\n<p>Now, current price strength may get a taste of reality should Bitcoin reach either MA, currently floating above spot price.<\/p>\n<p>\u201cOnce BTC is able to clear $36000&#8230; Next major resistance will be the ~$38000 area,\u201d Rekt Capital <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1411734755947732997\">explained<\/a> on Sunday, adding a summary chart. <\/p>\n<blockquote><p>\u201cNot only is this the Range High of the macro consolidation range Bitcoin is in now&#8230; But the two $BTC Death Cross EMAs (50 blue &amp; 200 black) will likely act as confluent resistance there too.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/0d7b608a-4df2-4b19-ab2e-094867525c76.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD annotated chart with &#8220;death cross.&#8221; Source: Rekt Capital\/ Twitter<\/em><\/figcaption><\/figure>\n<p>Trader Crypto Ed meanwhile <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Crypto_Ed_NL\/status\/1411919319919964164\">warned<\/a> on Monday that the weekend\u2019s ground would ultimately be lost again.<\/p>\n<p>\u201cFull retrace coming up,\u201d he said, arguing that the market needed \u201cproper retests\u201d of lower levels in order to fuel a true bullish resurgence.<\/p>\n<p>BTC\/USD corrected from highs of $35,900 to bounce off $34,000, a level which is still holding at the time of writing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Volume_fails_to_buoy_bull_case\"><\/span>Volume fails to buoy bull case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The weekend rally was suspicious for those eyeing one classic market trait \u2014 volume. <\/p>\n<p>Despite the brisk pace of gains, volume supporting them remained low, and as such, their reliability and ability to sustain themselves was in question from the outset.<\/p>\n<p>On Monday, on-chain monitoring service CryptoQuant noted that volumes are still declining, pointing to a lack of interest from major prospective buyers.<\/p>\n<p>\u201cBOTH Inflow and outflow are drying out with the trading volume in the market. Seems like the whales are staying low without much actions,\u201d the firm said in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/quicktake\/60e1f361c28d857f6113af21-0705-Volume-and-Market-Activity-drying-out\">blog post<\/a>. <\/p>\n<blockquote><p>\u201cPush to either side of the market would have a high possibility of triggering a relatively big reaction to the price.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/8063e130-846e-4e1b-99bc-ef3566c6b92e.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin volume data chart. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>On Saturday, however, statistician Willy Woo noted an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1411271233656672258\">instantaneous uptick<\/a> in Bitcoin entities holding large amounts of BTC \u2014 a classic signal that whales are interested. This followed the downward difficulty adjustment.<\/p>\n<p>As Cointelegraph reported, other investor profiles are also getting in on the spare Bitcoin supply, notably the so-called \u201cRick Astley\u201d type, or hodler of last resort.<\/p>\n<p>\u201cMr Astley is saying \u2018shorters gonna get rekt,\u2019\u201d Woo <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1411309360567840774\">commented<\/a> alongside additional supporting data.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investor_confidence_slowly_return\"><\/span>Investor confidence slowly return<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Just how bearish is the average Bitcoin market participant now?<\/p>\n<p>That question is traditionally answered by the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>, and if to believe its readings this week, things may not be all that bad.<\/p>\n<p><strong><em>Related:\u00a0Is Bitcoin in danger of losing $30K with Grayscale&#8217;s big GBTC unlocking in two weeks?<\/em><\/strong><\/p>\n<p>On Monday, Fear &amp; Greed reached its highest score in nearly three weeks \u2014 29\/100. The last time this h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened, BTC\/USD was on its way to June\u2019s local top above $41,000.<\/p>\n<p>Fear &amp; Greed uses a basket of factors to deliver sentiment estimates for cryptocurrency markets, and thus helps identify when assets are overbought or oversold at a specific price. <\/p>\n<p>Its bullish tops tend to reach 95\/100 or more, leaving plenty of room for Bitcoin to grow before \u201cextreme greed\u201d enters and sparks a rout.<\/p>\n<p>The index saw lows of 10\/100 \u2014 \u201cextreme fear\u201d \u2014 on June 22 before rebounding.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/6e0186ef-452c-46c6-a6ee-ef7fb0b7680d.png\"><figcaption style=\"text-align: center;\"><em>Crypto Fear &amp; Greed Index 1-month chart. Source: Alternative.me<\/em><\/figcaption><\/figure>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/an-even-bigger-mining-difficulty-drop-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# An even bigger mining difficulty drop? 5 things to watch in Bitcoin this week &#8221; Bitcoin (BTC) starts a new week in familiar territory after a weekend of solid gains ended in a drawdown \u2014 what\u2019s in store? With another rally to near $36,000 under its belt, the largest cryptocurrency is showing signs of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":291060,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvMDZlOWE1MDMtYTJiZi00MWNhLWExZDgtODA0NGI1OGI3NTgzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75462,75042,73785],"class_list":["post-291059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-hash-rate","tag-mining","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/291059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=291059"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/291059\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/291060"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=291059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=291059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=291059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}