Bitcoin Mining Stress Signals Potential Bullish Trend
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Bitcoin's mining ecosystem is experiencing significant stress as network difficulty has increased by approximately 15% while hash rate shows signs of softening. This combination has pushed miner revenue back into the critical $30 million per day zone, creating margin pressure that historically precedes market shifts. The current compression in mining economics typically forces less efficient operations offline, reducing selling pressure from miners needing to cover operational costs.
Historically, such mining stress periods have often preceded substantial price recoveries within 90 days. The reduction in forced selling, combined with the network's automatic difficulty adjustment mechanism, creates conditions where surviving miners benefit from improved economics. This fundamental reset could pave the way for renewed bullish momentum as the market absorbs the reduced supply pressure from distressed miners.
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