Rare bullish Bitcoin signal finally appears | Via BBCStaticMiner | Capital | July 2021
Rare bullish Bitcoin For the first time since the beginning of the bull market, the signals with compression of difficulty began to rise.
As pointed out by a BTC analyst Twitter, Since the beginning of the bull market, the difficulty zone compression seems to rise for the first time.
This indicator is a measure of the moving average Bitcoin mining difficultyThe mining difficulty index can be calculated by estimating the number of hashes used to mine the block.
In order to quantify these values correctly, BTC difficulty band compression uses normalized standard deviation. Historically, a higher value is associated with an increase in price, while a lower value indicates a downward trend in prices.
Now, this is what a compressed chart of BTC difficulty looks like for the past ten years:
The figure above reveals some interesting features about this indicator. It seems that the compression of the difficulty zone has a historical relationship with the price.
It seems that when the value of the indicator drops very low, BTC hit a low point on the curve. When it rises, as it is now, prices will rise.
However, there are some things to consider here. This indicator is a measure of the difficulty of mining. Due to China’s suppression, the world’s hash rate is currently facing some special circumstances.
After a period of sharp decline, as miners migrated from China to other countries such as the United States, the global Bitcoin hash rate began to rise again. This should mean that as the usual mines start operations again, the difficulty will increase rapidly.
This increase in difficulty may look like the chart now shows.
At the time of writing, the Bitcoin price is approximately $32,000, which has fallen by 4% in the past 7 days. In the past month, the value of the token has fallen by nearly 17%.
The price of BTC continues to be limited by the range, as the cryptocurrency still stays in the range of $30,000 to $35,000. It is not yet clear when the token will leave these levels and in which direction it may go next.
If the ribbon is difficult to compress, the price of Bitcoin may rise soon. On the other hand, due to special mining conditions, this increase in indicator values may not directly translate into prices.
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