Statistical data from Blockchain and Bitcoin Wisdom confirm that the latest correction of the Bitcoin mining difficulty level has increased by almost 10 percent. “Difficulty” refers to the ease with which miners can solve equations to validate a block of transactions in Bitcoin Blockchain.
The period from July brought recurring downward adjustments because Bitcoin’s price dropped and miners needed lower costs to avoid losses. This year there were five downward revisions – one in July, one in October, one in November and two in December.
The biggest change took place on December 3 – it was 15.1%. At that time BTC / USD was under strong pressure, due to the fact that the miners abandoned the network massively due to problems with profitability.
Hashrate experienced declines since August, but the reduced difficulty caused a recovery around mid-December, which for some was a demonstration of Bitcoin’s ability to take care of himself without central power.
Meanwhile, many Bitcoin developers emphasized the decentralized nature of Bitcoin as something that would increase his “separation” from altcoins in 2019.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market has not moved much since the bounce from 50% Fibo at $3,643 and a failure to break through the technical resistance at $3,850. Currently, the price is consolidating around the level of $3,774 with the neutral market conditions. The nearest technical support is seen at the level of $3,595.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Bitcoin analysis for 04/01/2019