Crypto king’s difficulty chart is about to enter “positive” zone: What is “difficulty ribbon?”
Bitcoin’s ‘hash tape’ and ‘difficulty tape’ (BTC) indicators reflect the increase / decrease in the activity of miners on the network. As with the “Golden Crosses” or “Death Crosses” of Bitcoin (BTC) price charts, they display the optimism or pessimism of miners.
120 days to recover
According to the publication of the Twitter account “Jan and Yann” of the founders of Glassnode, the difficulty of Bitcoin (BTC) is recovering from the latest Chinese attacks.
This indicator displays performance similar to that registered in late Q4, 2018, amid the capitulation of panic-driven miners. During the “colder” days of the Great Crypto Winter, when the price of Bitcoin (BTC) hit its lowest level in 50 months at $ 3,216, many miners shut down their platforms.
However, it took less than half a year for Bitcoin (BTC) difficulty to recover. With ribbon indicators, the “recovery” should be seen as a situation where the most volatile moving average (like 9MA) crosses the more stable (200 MA) from the bottom.
The ongoing miner capitulation can be attributed to the exodus of Bitcoin (BTC) miners from mainland China.
As previously reported by U.Today, the United States, Kazakhstan and Pakistan were the main destinations for this forced migration.
Is Bitcoin (BTC) coiled?
In 2021, it took only 120 days for Bitcoin (BTC) difficulty to flash its first “positive” signal after the massive dropdown.
As Bitcoin (BTC) comes out of its most bearish month with mediocre losses of just 7%, many analysts are sure it is on the cusp of the next phase of the rally.
Digital Galaxy CEO Mike Novogratz expects the king coin to rocket in late Q4, 2021.
At the same time, prominent economist Raoul Pal is forecasting a “3x-6x” rally in crypto capitalization in the coming weeks.
