Bitcoin Mining Difficulty Reaches New High of 100 Trillion-Will This Propel BTC to $120,000?
Mine one Bitcoin is now more difficult as the mining difficulty metric crossed 100T.
Bitcoin has a higher price valuation than it currently showcases per MVRV data.
Bitcoin’s mining difficulty recently increased by 6% to an all-time high of 101.65 trillion amid a record hash rate for the network. This move coincides with bullishness from a major technical indicator, signaling Bitcoin’s potential to climb towards $120,000.
The Bullish Bitcoin Technical Indicators
The price of Bitcoin crossed back above $75,000, a critical psychological level, following Donald Trump’s win in the U.S. election on November 5. CoinLupin, a market analyst at on-chain analytics firm CryptoQuant, utilized the Market Value Realized Value (MVRV) indicator to estimate Bitcoin’s present price.
The MVRV ratio is a powerful traditional tool for Bitcoin traders, offering insights into market valuation and potential price trends. CoinLupin stated that Bitcoin’s MVRV currently hovers at 2 while its price climbed just above $75,000. This suggests the market’s surface value is twice the on-chain estimated value.
The analyst added that the MVRV indicator recently surpassed the 365-day average and is now above the 4-year average, which often mirrors Bitcoin’s cycle. “This suggests that the upward trend remains intact, and generally, the cycle peak tends to occur when the MVRV reaches levels between 3 and 3.6,” CoinLupin emphasized.
He claims a 43-77% increase is critical for the MVRV ratio, assuming the Realized Value (RV) remains constant. When applied to Bitcoin, this translates to a target of $95,000 to $120,000. The analyst further noted that the RV is expected to rise as the market progresses with fresh demand. Considering previous cycles, he believes a peak may form above these zones.