Over the past seven days, the main cryptocurrency has risen in price by $ 7 thousand, and the complexity of its production has shown growth for the first time since May. Experts predicted whether quotes might continue to move up in the coming days
Over the past week, Bitcoin has risen in price by 20%. On July 31, the value of the main cryptocurrency reached $ 42.4 thousand.At 11:00 Moscow time on August 1, the digital coin is trading at $ 41.7 thousand.
The quotes could have been influenced by the next recalculation of the difficulty of Bitcoin mining, which took place on July 31. The difficulty of mining cryptocurrency increased by 6% (to 14.5 trillion hashes). This indicator has grown for the first time since May this year.
The complexity of the network determines the amount of computing power required to find a new block in the bitcoin blockchain. This parameter changes every 2016 blocks or approximately every two weeks. This is necessary to maintain a block dwell time of about 10 minutes.
Experts from RBC-Crypto explained what factors are putting pressure on the cryptocurrency market and whether Bitcoin should be expected to grow in the coming days.
On the one hand, the industry is showing an appetite for growth, trading participants are clearly tired of the lull in which the crypto market plunged this summer against the background of prohibition of mining in China, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, on the other hand, an unambiguous bullish trend is hindered by the conflicting information background around cryptocurrencies.
“Here are both alarming statements by the American authorities about the need to tighten crypto regulation, and regulatory pressure on the Binance crypto exchange, one of the largest trading floors in the crypto world,” the expert explained.
According to Soshnikov, now it is impossible to say with certainty that Bitcoin is preparing to jump to the level of $ 45 thousand. Even if the coin succeeds next week to reach this mark, then it is unlikely to gain a foothold there, the expert predicted.
“In general, I agree that we are on the verge of a new growth cycle, which will begin in the fall as the hashrate of the Bitcoin network recovers,” Soshnikov added.
Bitcoin probably has included a gradual recovery mode, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, eight “green candles” in a row, which can be observed on the daily chart of the main cryptocurrency from July 21 to 28, may indicate the buyers’ disposition to drag the asset price up.
After overcoming the $ 40 thousand mark, bitcoin set its sights on a test of the $ 48 thousand level, the analyst says. He also admitted that a slight pullback would follow in the coming days, followed by a new attempt to test the resistance level.
You will find more news about cryptocurrencies in our telegram channel RBC-Crypto.