Bitcoin Network Difficulty Hits Record High Amid Price Swings
As of August 2, 2024, the Bitcoin network difficulty reached a record high of 90.67 trillion. This milestone, reported by CoinWarz, signifies a significant rebound after three months of difficulty drops and reflects new confidence among miners in the cryptocurrency network.
The increase in difficulty means that mining new Bitcoin blocks now requires more computing power, which could impact operating costs and future supply dynamics. The intensification and competition in the mining environment are critical in assessing the health and security of the network.
Bitcoin’s Computing Power Reaches All-Time High
On July 27, 2024, Bitcoin’s computing power soared to a record high of 677 EH/s, showcasing a strong and secure network infrastructure. This spike indicates increased competition among miners and enhances the network’s ability to withstand potential security threats.
High computing power not only signals an uptick in mining activity but also has the potential to positively influence Bitcoin’s price by boosting investor confidence.
Bitcoin Price Faces Bear Market Pressure
Currently, Bitcoin is trading at $63,103.42, showing a modest recovery trajectory despite recent volatility. The cryptocurrency’s price range between $62,248 and $65,593 may pave the way for new highs if the trend continues.
However, with Bitcoin’s relative strength index (RSI) at 44.64, the cryptocurrency is approaching oversold conditions. A falling RSI suggests waning bullish momentum, and if bearish forces intensify, Bitcoin may test the next support level at $58,000.
Overall, the interconnected rise in difficulty and computing power of the Bitcoin network underscores the competitive mining landscape and the importance of monitoring price volatility for network health and security.
