Strong Downward Signal from Bitcoin: It Can Go Down to $ 6750 Levels
The difference between Bitcoin’s hashrate and mining difficulty has caused many miners to shutter. This can result in a huge Bitcoin dump again.
As Trader and the popular YouTuber TheMoon stated, the big differences between hashrate and mining difficulty have caused other Bitcoin miners to suddenly leave in the past. This was followed by a historically significant BTC price decrease.
Below is a graphical analysis showing the transition between the moving averages of Bitcoin’s hashrate and the mining difficulty.
The Moon draws attention to the historical trend that shows that Bitcoin has depreciated for a short time following block reward halves. This can be explained by the fact that many small miners leave the mining race when their rewards are halved.
This effect was seen in the block prize halfway event in 2016. Bitcoin’s price fell 21% in the three weeks following the half-time event – dropping from $ 654 to $ 517. If history recurs, we can expect the asset to drop from $ 8,550 to $ 6750 in the 2020 halfway.
Bitcoin’s mining challenge is updated every 2,106 blocks, which is done on average every two weeks. This has the opposite effect with the hashrate that is updated and tracked daily.
Bitcoin’s hashrate has dropped 38% since the block reward halved.
It is observed that the mining difficulty of Bitcoin decreased by only 6% in the same period. In the next 11 days, BTC’s mining difficulty will be reduced again by 6%, and possibly some miners will be left with the door open for return, but not much should be expected.
The difference between hashrate and mining difficulty maintains its magnitude. For this reason, the probability of a BTC price drop is high.
Even though this signal is a strong signal, it may not be worth taking action yet. The Moon says:
“I will not sell based solely on the indicator on this chain. I think technical indicators should be a priority. Chain-top indicators can be used as funds and with technical indicators. “