The previous week remained quite harsh for Bitcoin as its price fell below $17K from the high of $19K. It is recorded that Bitcoin mining difficulty is continuously increasing despite the movement in price. According to the on-chain analytics firm, Glassnode, Bitcoin mining difficulty increased by 8.9% in a single day. As compared to its all-time high, it is less than 5% below the all-time high value which was recorded in October 2020.
#Bitcoin mining difficulty increased by 8.9% today.
It is now only 4.4% below its ATH.
— glassnode (@glassnode) November 29, 2020
Huge Bitcoin Mining Difficulty Indicating Bull Cycles
Analysts have noticed that as Bitcoin mining difficulty increases to a great extent, it is indicating towards the bull cycles of 2013 and 2016. There are predictions that difficulty will increase to its all-time high, which is going to be a long-term bullish narrative for Bitcoin.
In the previous week, there has been a huge downtrend in Bitcoin price as it fell by 11% from the high of $19K. This was because a lot of Bitcoin whales have moved their holdings to the exchanges. At present, the Bitcoin price sits at $18,122 level and the ultimate target is to reach $20K.
Increase in Fees and Time
Bitcoin mining difficulty increases and approaches its all-time high which is indicating an increase in transaction fees. Currently, the transaction fees for Bitcoin is at 14,272 satoshis which are around $2.60. Along with the increase in transaction fees, there will be an increase in the overall time required to generate a block. It is not only Bitcoin that is seeing a substantial growth as the whole crypto market is going through a quite bullish phase. Ethereum has also seen record highs recently and is continuing to approach its all-time high. ETH mining difficulty is currently at a two-year high despite the recent plunge in its price. All the cryptos are highly bullish at the moment but it is yet to be seen whether it will last long or is for short period only.