Bitcoin bulls have been impressive, and credit needs to be given when it is due. After breaching $30,000 on June 21, BTC has maintained a steady position above the range. A positive sentiment is brewing in the industry, and chances are likely we will witness another yearly high. A correction is still possible in this bearish market, but now other bullish factors are piling on as well. In this article, we will take a dive into the next ‘difficulty’ period for Bitcoin, which may allow further bullish behavior.
Bitcoin ‘difficulty’ in line: Thumbs up for price?
Now fundamentally, this is somewhat of a negative update. Bitcoin network difficulty is due to a decrease during its impending readjustment on June 29. It is touted to be the 2nd largest drop of 2023, estimated at around -3.15%. However, for miners, it is an ideal situation. A decrease in BTC difficulty means it is easier for miners to solve equations to receive block rewards. Now, a higher spot price of BTC, with reduced difficulty on the blockchain network, permits higher incentives for miners to keep mining. For the asset price, that is possibly a win-win situation.
In recent news, Riot Platform, one of the largest Bitcoin mining companies in the world, has made a major purchase of 33,280 mining rigs from MicroBT. The total cost tallied up to $163 million, as most of these organizations are ramping up their setup. However, the delivery isn’t scheduled until December 2023, which would allow the organization to prepare before the halving event in 2024. According to ycharts, the current network hashrate sits at 364.33 TH/s/.
Back to Price Action
Without losing track of the current situation, a negative difficult adjustment might actually be beneficial in the short term for BTC. With volatility favoring a bullish outlook, a push above $32,000 could be in the cards for the largest digital asset. As illustrated in the chart, there is a lack of resistance between $32,500-$35,000, which propagates the perfect bullish setup for BTC. It should be an interesting period for Bitcoin in the short term, and investors can be on the lookout for a profitable trading session.