Bitcoin Market Outlook: BTC/USD trades above $9,700 as the mining difficulty sees one of its biggest drops in history
- Bitcoin is trading above $9,700 for the first time in four days.
- BTC mining difficulty dropped around 9% today, the second significant drop in the last month after Bitcoin’s third halving.
BTC/USD seems to have recovered well from the rejection on May 2 and it’s currently trading at $9,767 at the time of writing. After a successful defense of the daily 12-EMA for the past three days, the bulls look for the critical $10,000 resistance level again.
A huge drop in Bitcoin’s mining difficulty indicates that miners are leaving
It’s not surprising to see Bitcoin’s mining difficulty dropping after a successful halving event. A lot of miners have been forced to upgrade their hardware or leave as Bitcoin’s block reward has been halved. Today, the difficulty has dropped 9%, not the first significant drop in the last month as miners also experienced a 6% fall in the second half of May.
A drop in Bitcoin’s mining difficulty means that Bitcoins are easier to mine, but also that a lot of miners are leaving. The remaining miners that have better equipment or access to cheaper electricity are enjoying these dips in difficulty. Usually, a big decline in the mining difficulty can be an indicator of Bitcoin bottoming; however, based on historical data, this phase can last a few months.
BTC/USD daily chart
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Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
