- Bitcoin price stabilizes above $6,400 following rejection at $6,525.
- Stability above $6,400 to function as a stepping stone for gains targeting $7,000.
- Bitcoin mining difficulty adjusted by -16% on March 26 making BTC production affordable but not profitable.
Bitcoin price has since Monday been on a recovery journey following a dip to towards $5,800 over the weekend. There was a lot of struggle at $6,200 but the buyers finally sailed through, stepping not only above $6,400 but also breaking the resistance at $6,500. An intraday high has been reached at $6,525 on Tuesday.
BTC/USD has adjusted lower to 6,460 at the time of writing. However, it is still trading 0.82% higher from the opening value at $6,406.30. The prevailing trend remains strongly bullish and could act as the stepping stone for gains towards $7,000. On the other hand, low volatility means reduced trading activity, which means that upward movement could be limited along the day.
Bitcoin mining difficulty adjustment highest since 2011
The recent crash in Bitcoin price has been linked to the adjustment of the mining difficulty by almost -16%. The Bitcoin network constantly keeps adjusting to match the network mining power while ensuring that the issuance rate remains a steady level.
The mining adjustment on March 26 is said to be the biggest nosedive Bitcoin network has encountered since 2011. This drop has made Bitcoin mining affordable across the board for miners but not profitable for all.
Mining difficulty adjustment also ensure that alignment is made regarding past correlations in similar drop s as well as the short term losses in terms of the price of Bitcoin. Mining difficulty is controlled by the entire Bitcoin network hashrate. In other words, when there is an exodus of miners from the network, the difficulty also falls sharply.
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