How the Bitcoin Network is Faring One Week After the Halving

How the Bitcoin Network is Faring One Week After the Halving

As the post-halving tension eases, there appears to be a lot of changes in the Bitcoin mining dynamics which has subsequently affected the rest of the industry.

Talks about a previously unknown China-based mining pool dominating the mining sector have been making rounds lately. Lubian has popped up—seemingly out of nowhere—and is now ranked as the seventh-largest mining pool in what is known as a highly competitive industry.

Data reveals that this pool is responsible for processing about 6% of all Bitcoin blocks. What is quite remarkable is how this pool managed to achieve such a feat in just a short while. It is believed that Lubian might have come across mining equipment which could still be unknown to other mining houses.

Also, as a result of the slash in block rewards, many miners—especially small-scale miners— have found the business unprofitable and have been forced to shut down their rigs. This has led to a heavier concentration of miners, which in turn has caused more congestion on the Bitcoin network. Ultimately, all these have caused the transaction fees associated with Bitcoin to surge.

What is playing out now is that power has gotten condensed into the hands of those with enough resources to compete at the apex level. This gives more ammo to critics who claim that Bitcoin is a centralized network.

BTCUSD – Daily Chart

Bitcoin (BTC) Value Forecast — May 18

BTC/USD Major Bias: Bullish

Supply Levels: $10,000, $10,550, and $11,500

Demand Levels: $9,200, $9,000, and $8,500

As Bitcoin prepares to take the $10,500 level and higher, a bullish confirmation pattern has emerged yet again on the weekly timeframe. BTC appears to be on the verge of breaking a 2-year long trendline. This pattern gives credence to the bullish momentum that has been building for weeks now.

BTC could likely witness a slight retrace from this level and touch the trendline before continuing on an upwards surge.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.