Tokenized Bitcoin on Ethereum Now Tops $1.1 B: Here’s Why – CoinDesk
Bitcoin’s Hash Rate Hits New Highs, Leading to Imminent +11% Difficulty Adjustment
Bitcoin’s recent price turbulence has not been emblematic of its underlying strength, as the cryptocurrency’s hash rate has been plowing higher throughout the past several weeks and months, just setting another fresh all-time high.
This metric’s growth signals that demand for the Bitcoin network is incredibly high at the moment, despite many of the cryptocurrency’s detractors stating that it is being overshadowed by Ethereum.
It is true that Ethereum has seen a spike in blockspace demand like never before, but this has come about due to the inflows of users that need to use ETH to transact on decentralized exchanges.
Bitcoin, on the other hand, appears to be seeing more organic usage, which also comes as more transaction begin taking place outside of exchanges. This may come from peer-to-peer transactions, or even over-the-counter deals taking place between large buyers.
The rising demand for the Bitcoin network is what has caused its hash rate to surge. This, in turn, is leading to an imminent +11% difficulty adjustment that is slated to take place this coming weekend.
As NewsBTC reported last week, transaction data shows that users are beginning to transact with BTC at a rapid rate off of exchanges.
This means that the network is being used more widely by users, with its utility stretching beyond just being used by speculative investors who buy BTC on an exchange and let it sit there until they sell it.
As cited within the report, Glassnode spoke about this trend in a recent tweet, explaining that exchange fee dominance shows the declining role they are playing within the ecosystem.
“On-chain Exchange Fee Dominance shows the major role that centralized exchanges play in the Bitcoin ecosystem. 20% of all miner fees are currently used for BTC txs involving exchange activity. In 2018 after BTC peaked, this number was as high as 41%.”
Image Courtesy of Glassnode.
As Bitcoin’s hash rate reaches new highs, the blockchain is now about to undergo the second largest positive difficulty adjustment seen in 2020.
Glassnode also spoke about this in a recent tweet, referencing a chart showing the parabolic growth that BTC’s hash rate has seen.
“Regardless of short-term $BTC price movements, Bitcoin’s hash rate continues to climb – and to hit new ATHs. At the current rate, miner difficulty is estimated to increase by 11% this Sunday – the second largest positive adjustment in 2020.”
Image Courtesy of Glassnode.
This metric may not have any direct impact on the cryptocurrency’s price action in the near-term, but it does bode well for the asset’s fundamental outlook.
Featured image from Unsplash.
Author: News Bureau
Technicals Indicate Bitcoin Bears Are Likely To Protect Upsides Above $10,600
Bitcoin price started consolidating losses after a sharp decline to $10,300 against the US Dollar. BTC is likely to face a lot of hurdles near $10,550, $10,600 and $10,650.
Yesterday, we saw a sharp decline in bitcoin price below the $10,650 and $10,550 support levels against the US Dollar. BTC even settled well below the 100 hourly simple moving average, and traded to a new weekly low near $10,300.
It is currently recovering above the $10,400 level. There was a break above the 23.6% Fib retracement level of the downward move from the $10,990 swing high to $10,300 swing low. However, the previous key support near the $10,550 level is currently acting as a resistance.
It seems like bitcoin bears are likely to remain active if the price climbs above $10,550. The first major resistance is near the $10,650 level. It is close to the 50% Fib retracement level of the downward move from the $10,990 swing high to $10,300 swing low.
Bitcoin price struggling near $10,550. Source: TradingView.com
There is also a connecting bearish trend line forming with resistance near $10,680 on the hourly chart of the BTC/USD pair. To move into a positive zone, the bulls need to overcome selling pressure and push the price above $10,650 and the trend line. The next major resistance above the trend line could be near $11,000.
If bitcoin fails to recover above the $10,600 and $10,650 levels, it could start a fresh decline. An initial support is near a short-term bullish trend line with support at $10,450 on the same chart.
A downside break below the trend line could open the doors for more losses below $10,400. The next support is near the $10,300 level, below which the bulls might struggle to protect the $10,200 support zone.
Hourly MACD – The MACD is likely to move back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to stay above the 50 level.
Major Support Levels – $10,450, followed by $10,300.
Major Resistance Levels – $10,550, $10,650 and $10,680.
Author: Aayush Jindal