Bitcoin Records Longest-Running Consecutive Negative Difficulty Adjustment in History
July 18, 2021
The Bitcoin (BTC) network has just recorded its fourth consecutive negative mining difficulty adjustment. Reports show that the BTC mining difficulty fell by 4.8% to 13.7 trillion, its lowest point since June 2020.
The maker(s) of the benchmark cryptocurrency (Satoshi Nakamoto) coded the difficulty to update at every 2016 mined block to ensure that new coins are not overproduced or underproduced.
When the Bitcoin hashrate records a significant drop, like we are witnessing, it typically means that miners have switched off their equipment en masse. Higher difficulty levels translate to a slow down in the production of new blocks.
Meanwhile, the recent difficulty adjustment is the longest streak of negative adjustments in the history of the Bitcoin network. On July 3, BTC recorded a record-breaking 27.9% difficulty drop largely because of the intensified mining facility clampdown campaign in China.
That said, after suffering a drop as low as 58.5 EH/s on June 27, the BTC hashrate has climbed back above 100 EH/s. This recovery indicates that the displaced Chinese miners are now coming back online after migrating to friendlier countries.
Vice president of the crypto mining firm Foundry Services, Kevin Zhang, noted that he expects both hashrate and difficulty to begin a slow and steady ascent from its current levels. He noted that:
“The hangover of a difficulty adjustment downwards from the China crackdowns should conclude after this adjustment.”
Key Bitcoin Levels to Watch — July 18
Following a mildly erratic session over the weekend, BTC remains in a range-bound momentum between $32k and $31k. The benchmark is now dangerously close to the $31k pivot line and risks a fall below this critical level if bulls continue to cede control to bears.
To reestablish a decent bullish sentiment, BTC has to post a sustained break above the $33k resistance and the descending trendline at $33.75k over the coming hours and days.
Meanwhile, our resistance levels are at $32,000, $33,000, and $33,750, and our key support levels are at $31,000, $30,000, and $29,000.
Total Market Capitalization: $1.3 trillion
Bitcoin Market Capitalization: $594.8 billion
Bitcoin Dominance: 45.6 %
Market Rank: #1
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