Will BTC mining get more difficult? Here’s what this analyst says
Although Bitcoin’s [BTC] price could not break over the $23,000 resistance zone, the network’s block production difficulty has continued to rise steadily. However, it had rebounded and was reattempting a test at the $24,000 price range at press time, according to the examined daily period chart.
Read Bitcoin’s [BTC] Price Prediction 2023-24
It was trading at about $23,900 as of this writing, with a value rise of approximately 3%. Also, on a daily timescale, the price range between $23,136 and $22,561 acted as its support area.
Source: TradingView
As the price dropped, the Relative Strength Index (RSI) also showed signs of a decrease. However, it continued to trade above the neutral line, demonstrating the dominance of a bull trend.
The lengthy Moving Average (blue line), located slightly below the price movement, also served as a support area at about $19,600. Yet, because of the rise in Mining Difficulty, investors and miners may not want Bitcoin to revert.
According to a Glassnode analyst on 28 February, regardless of BTC’s fall, it was still higher than the Difficulty Regression Model (DRM) indicator.
<p lang=«en» dir=«ltr» xml:lang=«en»>The Difficulty Regression Model is an estimated all-in-cost of production for #Bitcoin. The value reflects an estimated production cost, which is $21,100.As the price is above the DRM, miners have come back online, hash rate exploded.
A good indicator of a bear and bull market pic.twitter.com/zhZyNsPtr5
— James V. Straten (@jimmyvs24) February 28, 2023
Changes in Bitcoin’s mining difficulty can be predicted with the help of a statistical model called the Bitcoin Difficulty Regression Model. Using a statistical model, researchers can foretell how Bitcoin’s mining difficulty will
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