Bitcoin Price hits $18,500 As Mining Difficulty Approaches All-Time High
Bitcoin price recovered over the weekend after a sharp drop below its support levels. The leading coin suffered a sharp price drop last Thursday, dipping below the $17,000 mark. This sharp movement led to huge losses for traders, with around $1.9 billion liquidated across top crypto exchanges.
Bitcoin has since retraced its movements and is currently on an upward trend in the past 48 hours. BTC gained 6% within this period and is currently valued at $18,580 with a market dominance of 62.1%.
Looking at the current trend, Bitcoin is currently trading within important support levels of $18,250 and $17,500. A breakout beyond the resistance levels of $18,700 would take BTC towards its all-time high. However, a dip below the $18,200 support level could see the coin drop towards $17,500.
Nevertheless, the market sentiment is extremely positive towards Bitcoin, with expectations that it could hit a record price level this week. Several stakeholders within the industry have made predictions that BTC could be set for exponential growth in the coming weeks.
Bitcoin Mining Difficulty Approaching All-Time High
Bitcoin’s price is not the only metric rising as the mining difficulty is approaching record levels. According to data from analytical firm Glassnode, Bitcoin mining difficulty is 4.4% below its all-time high. Bitcoin mining difficulty increased by 8.9% on November 29, 2020, while the hash rate is around $128 EH/s.
This metric is critical as the last time Bitcoin experienced such was at the last bullish run in 2017. Indeed, a sudden increase in mining difficulty occurred in 2013 and 2016, heralding a prolonged bull run. According to Mathieu Vincent of Summit Mining, the increase in mining difficulty was inevitable due to Bitcoin’s rise. ‘’Each new computer plugged in increases the difficulty. The higher the price, the more users want to mine, because it is profitable,’’ He said.
The crypto community will be hopeful that the recent development in mining difficulty follows historical trends. Bitcoin is currently in an extended bullish run, with the leading crypto asset recording an increase in its marketcap to $344 billion.