On Sunday, May 24, the Bitcoin (BTC) price crashed nearly 5% to slip below $9000 levels following a downward selling pressure. After reaching close to $10,000, BTC has been facing tough resistance at $9800-$9900 levels. Over the last week, the Bitcoin (BTC) price has corrected 10% ultimately dropping close to $8800.
At press time, BTC is trading for a price of $8805 with a market cap of $161 billion. Moreover, post the Bitcoin halving, miners are selling more than they mine. Over the last year, BTC has recorded six consecutive lower highs with the latest being $10,000. Over the last year, BTC has seen major rejections at $14,000, $13,300, $12,300, $10,600, $10,500 levels.
the new lower high of $10,000 means that buyers are failing to pull-out a new bull cycle. A lower peak formation every time suggests that selling pressure is just too high to break the resistance.
As per some market analysts, the Bitcoin price will continue to oscillate between $8800-$9300 levels before seeing any major pullback. Moreover, pots the recent Bitcoin halving, miners are on a selling spree more than they mine. Post the latest Bitcoin halving, the miner costs have really turned high with the breakeven costs going as high as $120,000.
Well, since Bitcoin is facing massive selling pressure at $10,000 levels, miners are now selling their old stock to meet their operational costs. As per popular crypto investor Willy Woo, there are two unmatched sellers in the Bitcoin market: exchanges and miners. In his Twitter thread, Woo wrote:
“There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market”.
BTC Price Is Down as Bitcoin Network Sees Some Major Changes in Mining Difficulty
Post the Bitcoin mining halving two weeks back, the Bitcoin core network has seen a major drop in mining difficulty. The Bitcoin mining difficulty is the measure of how hard it is to compete for the block rewards. during the first difficulty adjustment post-mining, the mining difficulty dropped 6%.
After the halving, over 20 exahashes per second (EH/s) of computing power got switched off from the BTC network. Considering the 7-day rolling average, BTC’s hash rate crashed 20% from its before halving status. Before the halving on May 11, BTC’s hast rate was 122 EH/s and now it is currently at 92.7 EH/s.
On the other hand, the Bitcoin network mempool size has also increased to its highest in the last two years since January 2018. Currently, the Bitcoin mempool size has gone to around 70 MB. The Bitcoin mempool consists of the total unconfirmed transactions i.e. the Bitcoin transactions which have been broadcasted but yet to be included in the BTC blockchain.
With the increase in the Bitcoin mempool, the Bitcoin transaction fee has also surged significantly over the last week.
Other Bitcoin news can be found here.