Bitcoin price is experiencing tremendous bearish pressure after surging notable in the early trading hours. The huge consolidation since then is pointing towards the asset being still under the captivity of the bears. However, the volume and the volatility, both have been slashed to some extent may hinder the rally in the coming weekend.
In a recent update, Bitcoin’s difficulty ribbon is narrowing, pointing to a capitulation of miners, which could force the price to reach the bottom again. The ribbon consists of short and long simple moving averages, which compress the movement of the miner.
This happens when the miners shut down operations which results in s drop in the hash rate and the mining difficulty.
Compression now indicates that mining of blocks, including transaction verification, will be more difficult. However, the mining difficulty is adjusted and increased or decreased every two weeks depending on the number of participants in the mining network and their total mining power.
On the other hand, while the Ethereum Merger is fast approaching, the ETH miners may also consider shifting to Bitcoin along with Ethereum Classic. Therefore, if the price withstands the bearish pressure in the upcoming weekend, then it may thrive for the rest of the month ahead. Else the BTC price could drop hard, forming bottoms at $20,000 or below.
