Bitcoin Records Upward Difficulty Adjustment as Hash Rate Nears All-Time High
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Over the last ninety days, the Bitcoin (BTC) hash rate has recorded a steady increase to its recent all-time high recorded in May. That said, the booming hashrate has triggered a ripple effect in the network’s difficulty, as its mining difficulty has seen an upward adjustment nine consecutive times to date.
Bitcoin’s difficulty is a programming mechanism implemented in the code by the founders to maintain a steady rate of block verification. That said, the difficulty mechanism keeps the network secure and impervious to network hacks or compromises, like the infamous 51% attack.
Bitcoin’s hash rate slumped by over 39% this year, between June and July. As of May 13, the mining difficulty peaked at 25.05 trillion, and by July 3, BTC’s mining difficulty had dropped to a low of 13.6 trillion following the most significant downward difficulty adjustment on record.
Fast forward to November 20, and the mining difficulty stands at 22.67 trillion and continues to climb closer to the 25.05 trillion ATH.
That said, the new development means that it would take more resources to mine Bitcoin today than it was six months ago. Mining difficulty needs to increase by 10.27% from its current level to surpass the May 13 record high.
Key Bitcoin Levels to Watch — November 21
BTC appears to have regained a little bullish undertone as the benchmark cryptocurrency re-emerges from its recent slump to the below $54K area. However, the cryptocurrency currently lacks the bullish capacity to retake the $60K psychological mark and push prices back into the $60Ks. This weakness has forced BTC back below the $59K level, as bulls regroup to retest the psychological mark.
That said, the near-term prospects of the flagship cryptocurrency remain very hazy, as BTC currently has no short-term bearing. Nonetheless, the overall bias remains in favor of the upside as we head into the end of the year.
Meanwhile, my resistance levels are at $60,000, $61,000, and $61,785, and my key support levels are at $58,000, $57,500, and $56,700.
Total Market Capitalization: $2.64 trillion
Bitcoin Market Capitalization: $1.11 trillion
Bitcoin Dominance: 42.3%
Market Rank: #1
