Bitcoin Hovers Below $11,500 as Hash Rate and Mining Difficulty Hit New All-Time-Highs

News and Analysis

Bitcoin (BTC) is changing hands at around $11,450 on Monday, mostly unchanged since the beginning of the Asian session, and could be preparing for the next major move either above $11,500 or towards $10,800.

If there is a successful close above $11,500 and $11,650 resistance levels, the bulls are likely to take control and push the price towards the $12,000 and $12,400 levels in the coming days.

On the downside, the initial support is created by a confluence of the lower boundary of the triangle pattern, SMA100 (Simple Moving Average) and the middle line of Bollinger Band on 4-hour chart. This strong barrier is closely followed by a critical $11,000 and the lower boundary of 4-hour Bollinger Band. The next support level is at $10,400.

Source: Coin360

Considering that the area both above and below the current price is packed with strong technical levels, a sustainable move in either direction might trigger a strong movement.

Some analysts, however, are saying short-term behavior could point to lower lows in the coming days and weeks.

Meanwhile, Bitcoin’s hash rate reached 74,548 EH/s on Friday, which was a new all-time high. The previous record was broken in the second half of June, when the hash rate reached 65.19 EH/s and growth has steadily continued since then. By Monday, this estimate fell down to 60.35 EH/s though.

At the same time, Bitcoin mining difficulty, a relative measure of how difficult it is to find a new block, which is adjusted every 2016 blocks as a function of how much hashing power has been deployed by the network of miners, is also at its new all-time high.

Just in the end of June it reached 7.86 trillion, surpassing the previous peak in October 2018, but today the difficulty is already at 7.93 trillion.

In other words, competition among miners for new blocks as well as overall Bitcoin network security has never been higher.

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