What do Bitcoin’s Mining Difficulty Adjustments Say About the Bull Market Top?

In late October, we jumped 42% in value that saw Bitcoin surging to $10,500 level. Since then, however, Bitcoin has gone back to $8,600 level.

But the market is still bullish and has huge expectations from BTC as in November, we have recorded some of the greatest gains. We are also less than six months away from the next Bitcoin halving that historically has been the catalyst for Bitcoin bubbles.

But how high we are going to fly?

According to downward difficulty adjustments, we could end up seeing just a 245% run-up, shares Nunya Bizniz.

BTC Monthly:

Downward Difficulty Adjustments.

Gains from the monthly close of the last downward adjustment until the all time high are substantial.

Will 245% be the end of this run? pic.twitter.com/CaXsx03yqL

— Nunya Bizniz (@Pladizow) November 13, 2019

During the 2013 bull run, the price topped after a 24,000% increase after the monthly downward difficulty adjustment. The next time in 2017, it was 8,700%.

This time, the monthly downward difficulty adjustment happened in December 2018 and the difficulty hit an ATH recently at 13.69 trillion on Oct. 24.

Next phase of the bull run is “approaching”

As we reported, the mining difficulty of the Bitcoin network has taken the biggest drop in 2019. This 7% fall in the difficulty, however, isn’t “unusual” as we have seen such adjustments previously in bull markets of 2013, 2016, and 2017 along with the bear markets of 2015 and 2018.

As a matter of fact, during the bear market, such adjustments marked the bottom of the market.

This time, after hitting an all-time high at 13.69 trillion on Oct. 24, mining difficulty took the fall on Nov. 8 at 12.72 trillion and has been stuck here since then, according to Bitinfoccharts.com.

This loss in difficulty could be a random fluctuation or switching of old hardware. But it can be expected that with low difficulty and the increase in BTC price, miners will jump at this opportunity and bring in more machines to secure the network.

Popular analyst PlanB says the next positive adjustment would be bullish for BTC price.

9 years of #bitcoin difficulty adjustment: like clockwork pic.twitter.com/VEOBBw2OeZ

— PlanB (@100trillionUSD) November 12, 2019

An estimated 4% positive adjustment in the bitcoin mining difficulty is expected next week which means “no more capitulation.”

This means the next phase of the bull run is “approaching” as PlanB explains,

“If the next difficulty adjustment is positive (green or red) then we are “entering” the second phase.”

It’s just the beginning and we have a long way ahead. According to some, it could be $200k while $1 million by others.