Crypto king difficulty chart is about to enter the “positive” zone: what is the “difficulty bar?”
- 120 days to recover
- Is Bitcoin (BTC) Coiled?
Bitcoin (BTC) “hash bar” and “difficulty bar” indicators reflect the increase/decrease in miner activity on the network. As with the “Golden Crosses” or “Death Crosses” price charts for Bitcoin (BTC), it shows optimism or pessimism for miners.
120 days to recover
According to a Twitter account post by the founders of Glassnode, “Jan and Yann,” Bitcoin (BTC) difficulty is recovering from the recent Chinese attacks.
# bitcoin The difficulty bar will soon indicate a positive recovery with more miners returning online.
The last similar event was in the aftermath of the bear market capitulation in December 2018, which took 164 days to turn positive.
The current mining recovery took 120 days. pic.twitter.com/l2Nmc9RYTR
– Jan Wean (@Negentropic_) October 4, 2021
This indicator shows a performance similar to that recorded in the late fourth quarter of 2018, amid the panicked capitulation of miners. On the “coldest” days of the great crypto winter, when the price of Bitcoin (BTC) touched a 50-month low at $3,216, many miners shut down their rigs.
However, it took less than half a year for Bitcoin (BTC) to recover. With bar indicators, the “rebound” should be considered a situation in which the more volatile (eg 9MA) crosses over the more stable (200 MA) from below.
The continued capitulation of miners can be attributed to the exodus of Bitcoin (BTC) miners from mainland China.
As previously covered by U.Today, the United States, Kazakhstan and Pakistan were the top destinations for this forced migration.
Is Bitcoin (BTC) Coiled?
In 2021, it only took 120 days for Bitcoin (BTC) to struggle to flash its first “positive” sign after the massive dropdown.
With Bitcoin (BTC) emerging from the most bearish month with only a modest 7% loss, many analysts are certain that it is on the verge of the next stage of the rally.
Mike Novogratz, CEO of Digital Galaxy, expects the coin to rise in the late fourth quarter of 2021.
Meanwhile, prominent economist Raul Pal expects a “3x-6x” rise in cryptocurrency capitalization in the coming weeks.