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Bitcoin’s mining profitability depends not only on bitcoin’s price and electricity costs but more importantly on the mining difficulty, namely, how many other people are competing against each other.

When bitcoin’s price goes up, it could attract more people to participate in mining, which results in an increasing level of hash rate and mining difficulty, a trend we have seen over the past six months.

As a result, if bitcoin price’s growth doesn’t catch up with the increase of mining difficulty, miner’s profitability could drop, assuming holding everything constant.

Therefore, miners may be incentivized to keep the price low to force out smaller operations in the hope for hash rate drop so that the ones left will be able to mine more.

That said, mining is a dynamic and ever-changing game.

Bitcoin’s mining difficulty dropped by 7 percent in its previous adjustment cycle, which was the largest drop since Dec 2018.

To be sure, bitcoin mining’s difficulty and hash rate are both still just slightly down from their all time highs.

If miners anticipate a major run next year due to the scheduled halving, some may choose not to sell at this point but would rather pledge their bitcoin as collateral to borrow USDT or fiat to pay for utility and operational costs.

Bitcoin Bull Sentiment Wanes On Bear Cross

BTC: Price: $8,132 | MCAP: $149.01 Billion | 24-Hr Volume: $22.2 Billion

Trend: Bearish

Bitcoin has confirmed a bear cross of the 100-day and 200-day moving averages (MA) leading to expectation of a greater drop in its price.

The last time these two averages crossed on the daily chart was back in early 2018, when BTC fell by more than 60 percent before finally bottoming out at $3,122 on Dec. 15.

China's stance toward crypto and a lack of new catalysts has left traders wanting, with expectations for further price discoveries to occur at lower levels targeted on the weekly chart.

Long-term trend: Neutral

The 100-period weekly MA sets scope for $7,520, the most likely landing pad in BTC's price action as it falters along $8,100 amid low levels of volume.

A bullish reversal could be on the table, given a drop in both volume period-to-period alongside price, as per typical volume theory, but at this stage more buyers need to enter the market on the back of positive developments in the space, lest the bulls concede a drop to the level mentioned above.

Read Analysis

Lisk Rises On Kraken Exchange Listing

LSK: Price: $0.81 | MCAP: $98.5 million | 24-Hr Volume: $3.9 million

Short-term trend: Pullback

LSK experienced a positive boost in value today, up 3.1 percent over a 24-hour period after an announcement was made by the Kraken exchange to list the native utility token, beginning Nov. 19.

Its price hit a new peak high of $0.87 at around 18:00 UTC, its highest point since Oct. 12, before a sell-off and period of profit-taking engulfed LSK's bullish price action.

Expect the pullback to continue to bleed its price as it searches for the local bottom near $0.73-$0.75, should buying pressure abate.

Long-term trend: Neutral

LSK had been range bound over a 24 day period, before shooting higher amid the Kraken exchange listing.

However, prices has since fallen back within the zone between $0.73 and $0.81, adding credence for a deeper drawdown to the bottom of the range.

The relative strength index, an indicator of trader sentiment and momentum, shows the neutral 50 line as a significant pivot point, having first acted as support and then resistance, now flipping once more back to support.

If the pullback survives that point on the 6-hour RSI and continues to hold, consider another leg up.

Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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