Key Points
- Bitcoin (BTC) faced a potential decline to $61,000 on May 9, testing support trendlines.
- Network fundamentals were impacted by the latest BTC price movements.
Bitcoin’s price was under pressure on May 9, with the possibility of a drop to $61,000. This downward trend was a test for the established support trendlines.
Bitcoin’s Price and Market Support
The BTC price showed a slow decline, erasing the gains of the previous week. Despite the volatility, BTC/USD lacked upward momentum. As a result, the 100-day simple moving average (SMA) and short-term holder realized price (STH-RP) were back in focus.
These are traditionally considered as bull market support levels. The brief dip last week to $56,500 did not significantly impact these levels. The 100-day SMA and STH-RP, which represent the aggregate cost basis of Bitcoin speculators, were reported to be $61,200 and $60,100, respectively.
Bitcoin’s Market Analysis
According to a popular trader, the 100-day SMA and the monthly opening at $60,600 are crucial on high timeframes. He also noted the presence of some 100BTC bids and emphasized the need for evidence of seller absorption to establish strong demand confluence.
Data showed a concentration of bid liquidity just below $61,000, which Bitcoin had yet to challenge. The trader suggested that someone was lowering the price while attempting to attract liquidity to sell on rebounds.
The recent BTC price fluctuations have affected network fundamentals. The Bitcoin mining difficulty was set to decrease by 5.5%, marking the largest single downward adjustment since the end of the 2022 bear market. The difficulty is currently at an all-time high of 83.23 trillion.
A mining analysis account noted that the hash rate was already decreasing. However, it emphasized that for miners, the difficulty is more important than the network hash rate. Miners will not mine more Bitcoin per EH/s until the difficulty is adjusted downward, which occurs every 2016 blocks or approximately 14 days.
