The Bitcoin price has dropped by 1.5% today, falling to $26,244 as the cryptocurrency market continues to teeter in the face of a possible US debt default. BTC‘s current price represents a 4% loss in a week and in the last month, although the original cryptocurrency is still up by 58% since the beginning of the year. And despite today’s slip, data reveals that Bitcoin’s mining difficulty has reached an all-time high, in a sign that more miners are looking to accumulate BTC during the ongoing bear market. Moreover, with an all-time high also being reached for the amount of bitcoin that hasn’t moved for at least 10 years, it seems that most serious market players are biding their time and stacking sats while they wait for the next bull market.
After its fall overnight, it seems that BTC has begun recovering a little this morning, with its indicators showing some sign of regained momentum. The cryptocurrency’s relative strength index (purple) has reawoken after reaching an oversold position of 20 yesterday, moving just above 40 in a sign of incoming buying pressure. Nevertheless, its 30-day moving average (yellow) is still sliding, although not quite as steeply as it was yesterday, something which also possibly hints at improved performance in the coming days.
In this respect, it’s encouraging to note that the support level of roughly $26,100 appears to have held up this morning, with BTC refusing to sink any lower. Of course, with the market spooked by the threat of US debt default, it remains to be seen whether Bitcoin will retain this support level or will drop further. On the positive side of the equation, Bitcoin’s fundamentals remain as strong as ever, with the aforementioned all-time high for mining difficulty highlighting how its network remains in rude health.
Not only has mining difficulty recorded new highs in recent days, but so too has Bitcoin’s hashrate, which is an indicator of how much computing power is being used to secure the cryptocurrency’s network. It’s worth pointing out that, in contrast to certain altcoins (e.g. Solana), Bitcoin has never suffered a network outage, a fact which has helped cement its status as the safest cryptocurrency in which to invest.
And while it continues to suffer along with the wider market (and stock market), signs suggest that many investors — including whales and miners — are currently in accumulation mode right now, preparing for the next big rally. For instance, miners have just begun hoarding rather than selling bitcoin (their net outflows turned negative), while the balance of BTC on exchanges has reached a one-month low of 2,302,913.
On top of this, the market has also just seen a new all-time high for the amount of BTC that hasn’t moved in at least ten years, as well as for the number of wallet addresses which hold at least 1 BTC. Gradual recovery and modest improvements in national economies, such as the UK and Eurozone, may take time to translate into significant gains for Bitcoin and other cryptocurrencies, but it’s nonetheless clear that things are generally improving at the moment.
Needless to say, this will depend on
Source: Cryptonews
