These are very uncertain times for cryptocurrencies led by the Grandmaster of crypto, Bitcoin, on the market. Together with the entire cryptocurrency market, Bitcoin has been facing some levels of volatility as the markets lose their upward momentum that has been witnessed over the past several weeks leading to the cryptocurrency markets experiencing trends of sideways trading.
Despite Bitcoin’s recent price depreciation into the 7,000 US dollar region that appears to put its bullish momentum under threat, analysts are now arguing that Bitcoin might further record dismal prices as low as 5,400 US dollars before the whales surrender their control at full.
Following what can only be described as a winter period in the cryptocurrency market, Bitcoin and other cryptocurrencies seem to have endured the winter to start recording recovery trends that are gathering pace quickly.
For instance, a couple of weeks ago, a new price surge propelled Bitcoin prices towards the 9,000 US dollar mark, which is so far the highest level this year and the best rate since May 2018. Even though Bitcoin’s price has retreated below the 8,800 US dollar mark by the time of writing, its prices are still 137 percent higher than what it was at the beginning of the year.
These recovery trends have far-reaching implications for both cryptocurrency miners and traders who earn money from offering solutions to mathematical problems to confirm Bitcoin’s platform transactions.
Bitcoin Recovery Efforts Propel it to the Upper 7,000 USD Region as the Selling Craze Kicks In
At the time of writing, Bitcoin is exchanging at about 7,900 US dollars, a slight increase from its 24-hour high of about 7,940 US dollars that was set earlier today.
Looking at the trading period of Bitcoin for the past one week, BTC has been wavering between the lower 7,000 US dollar region and the upper 8,000 US dollar region, a trend that is quickly taking shape as Bitcoin’s trading range. If BTC continues recording such trends, the new direction might form a new persistent pattern of consolidation.
More important to note, looking at the long-term perspective, is, Bitcoin might not be out of the woods just yet as it appears it could record a significant fall soon before surging.
According to a renowned cryptocurrency trader, Josh Rager, Bitcoin could drop further to fetch dismal prices such as 5,400 US dollar before falling into a long-term price surge trend, which means that the market should brace itself for further losses.
Through his Twitter handle, Josh Rager tweeted:
$BTC Pullback Areas
The lowest I see Bitcoin pulling back is the .618 fib ($5404) as any lower would be bearish, IMO
Major confluence w/ previous support/resistance between $6109 to $6814
I'm personally watching for a bounce in this area with major interest near $6400 (VPVR) pic.twitter.com/WpvzOxdZzU
— Josh Rager 📈 (@Josh_Rager) June 6, 2019
Bitcoin (BTC)’s New All-time Mining Difficulty
When looking beyond the fluctuating and somewhat the unpredictable price swings, it seems another indicator is worth noting. The Bitcoin mining difficulty has recorded a new all-time high following a shocking 11.3 percent increase.
Bitcoin mining difficulty has just hit an all-time high.
The network is stronger than ever.
— Kevin Rooke (@kerooke) May 31, 2019
While sometimes it may be assumed that bitcoin miners make the digital coin out of thin air, that can only be perceived as being further from the truth. Miners invest heavily in high-performing machines and have to foot substantial electricity bills as the mining process is a power-intensive one. That is why miners find themselves under a lot of pressure during crypto winters that are also known as a year-long bear market.
But contrary to what many would tend to think, recording a new record in mining difficulty means the Bitcoin platform is now more secure and stable than it has ever been.
What the term difficulty means is the ease at which Bitcoin miners use to solve the cryptographic problems required to mine new blocks on the BTC platform. High mining difficulty is translated to be an indicator of either a current or an upcoming bullish movement in the value action of Bitcoin against the US dollar.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.