After teasing a potential rise above the $10,000 mark on the 8th and 9th of May, the bullish momentum blew up on Bitcoin’s face and a huge 15.22% dump was witnessed in the charts.
Support for $9400, $9100, and $8800 were all broken during the crash, and Bitcoin is currently valued at $8649. With a halving less than 24 hours ago, the largest digital asset will end its price point below $9,000 before the halving.
Currently, over the past 24 hours, a series of other improvements have also been found in the BTC ecosystem.
According to data from Bitinfocharts, Bitcoin transaction fees have increased from $0.66, up to $3.19 dollars in the chart over the past week. Marking an extremely turbulent period, it was also noted that at the time of the press, transaction fees had dropped to $1.92.
In addition, it was also indicated that the last time Bitcoin obtained such an increase in transaction fees, it was back in July 2019. However, the average transaction fee of $55 back in December 2017 appears to be an all-time high valuation.
One of the reasons behind such a high transaction fee is that users are actually paying more to get their transactions checked at a quicker pace on the network. With halving hour away, it is possible that the increased strain on the network may be caused by a rise in sales pressure on the network.
Is mining sell pressure increasing after the price collapse?
Before Bitcoin broke above $9000 towards the end of April, mining selling pressure was recognized as a legitimate concern for the price of Bitcoin after the halving. As Bitcoin consolidates close to $10,000, a sense of excitement has been breathed into the ecosystem as the majority of users predicted Bitcoin to reach halfway over $9,000-$9,500.
The situation has changed dramatically over the past 48 hours, as Bitcoin has fallen to a price of $8500. Alas, bringing back the necessary threat of mining pressure to sell.
Currently, rising sales pressure from miners will implicitly suggest that miners are considering the profitability of Bitcoin mining. Bitcoin had to maintain a valuation above at least $8000 for miners to stay on the network. However, Matt D’Souza of Blockware Solutions said that 27 percent – 35 percent of Bitcoin miners might go offline if Bitcoin stays under $9,000 for a few weeks post-halving.
If the mining distress situation has some reality to it, Bitcoin’s price could have dropped even lower in the next few weeks after halving.