👉👉👉 #Bitcoinmining difficulty risks biggest dip since 2022 as BTC price eyes $60K

Despite Bitcoin's price hovering above $60,000, signs of strain are evident in network fundamentals, indicating a lack of substantial price gains.

Bitcoin (BTC) faced a potential breakdown below $61,000 on May 9, as it tested familiar trendlines for support once again. Despite minor fluctuations, BTC's price showed limited upward momentum, erasing gains made over the past week.

While short-term volatility affected order book liquidity, overall, BTC/USD lacked significant bullish momentum. Attention turned to key support levels, including the 100-day simple moving average (SMA) and short-term holder realized price (STH-RP), both crucial indicators in a bull market. Despite a brief dip to $56,500 the previous week, these levels remained intact.

At present, the 100-day SMA and STH-RP stand at $61,200 and $60,100, respectively. CoinGlass data revealed a notable concentration of bid liquidity just below $61,000, indicating a concerted effort to lower prices and attract liquidity for selling on rebounds.

However, BTC's recent price movements have taken a toll on network fundamentals, particularly mining-related metrics. Bitcoin's mining difficulty is set to drop by 5.5%, marking its largest single downward adjustment since the end of the 2022 bear market when BTC/USD traded below $20,000. Despite this adjustment, difficulty remains at all-time highs of 83.23 trillion.

Mining analysis from Pennyether highlighted a decline in hash rate, emphasizing the significance of difficulty adjustments for miners. Until difficulty decreases, miners will not be able to mine more Bitcoin per EH/s. The current landscape suggests a potential -7% adjustment, which would place the "difficulty #hashrate " around 585 EH/s.

In summary, while Bitcoin's price remains relatively stable above $60,000, ongoing strain in network fundamentals, particularly in mining-related metrics, suggests potential challenges ahead.

Source - cointelegraph.com