Bitcoin: could this be a sign of the end of the bear market
The previous week has seen various highs and lows for Bitcoin in regards to its chain metric, as well as its price. For the most part, the crypto didn’t seem to be making a lot of gains. This week alone, BTC made history with several indicators while others appeared to be following the historic path. One particular measure, however, noted a very rare movement. Could this be the necessary sign to confirm the end of the bear market?
Bitcoin – No longer volatile?
Over the past 7 days, the royal coin has consolidated in the $ 32,000- $ 36,000 range, recording a weekly high of $ 36,460 and a low of $ 32,775. This may indicate that the coin may no longer be volatile and may enter a period of long term consolidation. In fact, its effects could also be seen on a few other metrics, particularly regarding hash rate and mining algorithm.
The great migration
The impact of China’s mining ban has peaked as Bitcoin has seen some pretty significant negative effects. The hash rate took its biggest hit for the first time in Bitcoin’s history as mining time peaked. The Average Block Interval displays the time it takes to mine each block from the blockchain and each time the hash power decreases, that “time taken” increases.
This week, on an average of 24 hours, the time required to extract a block reached 32.6 minutes or 1958 seconds. This was over 226% longer than the average block time of 600 seconds. While this is likely temporary, it underscored the effects of the great mining migration.
The reason this raised eyebrows, however, is that the last time the average block time was this high was when Bitcoin was born. In 2009, when BTC didn’t even have a price yet. In addition, this peak aligns with the drop observed by the Mean Hash Rate.
Hash rate crash
Normally the hash rate on the network ranges from 160 EH / s to 200 EH / s, with an average of 180 EH / s. However, this week like the average. block time peaked, hash rate reached a local minimum of 65 pe / s. Lately, the hash rate has hovered between 88 and 110 EH / s due to the ban on mining in China. But even so, the decline was estimated to be 38% – 49% below the current average. This also affected the difficulty protocol.
Reverse Difficulty Tape
The difficulty ribbon displays the effects of the adjusted protocol difficulty. This week alone, at one point, the difficulty had to be adjusted down 27.94%, the biggest adjustment in history. Thus, this led to the reversal of the difficulty ribbon. This ribbon of difficulty reversal is very rare and represents the capitulation of the miners.
The reason it is rare is that such events only occur towards the end of bear markets or after halving.
This could be a sign that the widely speculated “bear market” we were in is now over. That being said, this finding also doesn’t signal a rally for the coin.
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