Bitcoin Mining Difficulty Hits Its Lowest Level in History Amid China Crackdown
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New data from Glassnode revealed that the Bitcoin (BTC) mining difficulty has dropped by 28% in its latest adjustment, making it the worst negative adjustment in BTC mining history.
Bitcoin mining difficulty is a metric used to illustrate how hard it is for miners to successfully solve a mining block on the network. Typically, when the difficulty goes up, miners need more computational power to solve mining difficulties and vice versa. As the number of computational devices increases, the hash rate increases as well, which makes the network more secure and robust.
However, like the price, the Bitcoin mining difficulty fluctuates and adjusts automatically at the crossing of 2016 mined blocks. This adjustment takes two weeks as the average time for mining one block is 10 minutes. That said, as mining power enters or leaves the network, the difficulty fluctuates. With the increased crackdown of BTC mining activities in China, Bitcoin’s mining difficulty has fallen to its lowest level in history.
The negative adjustment occurred in tandem with a decrease in Bitcoin’s hash rate. At press time, the total hash rate is at a one-year low of 87.6M TH/s, according to blockchain.com. The hash rate has dropped by over 50% in less than two months, following its all-time high recording of 180M TH/s in May.
Key Bitcoin Levels to Watch — July 4
With the broader market in a healthy bullish recovery, Bitcoin has reemerged above the $35k resistance. The benchmark cryptocurrency now pushes at the $36k resistance but first needs to break above the 200 SMA at $35,600. A successful break above this level should accelerate the recovery over the coming hours.
On the flip side, any decline from the current price level should get repelled by the ascending trendline at $34k.
Meanwhile, our resistance levels are at $36,000, $36,500, and $37,000, and our key support levels are at $35,000, $33,750, and $33,000.
Total Market Capitalization: $1.47 trillion
Bitcoin Market Capitalization: $666 billion
Bitcoin Dominance: 45.2%
Market Rank: #1
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