On July 21 at around 7 p.m., the mining difficulty for Bitcoin (BTC) is anticipated to decrease by about 4.5 percent during the following adjustment window. BST
Since China’s crackdown on Proof-of-Work (PoW) mining in May 2021, this occasion will represent the mining difficulty’s greatest reduction.
Research conducted prior to the ban suggested that China accounted for 75% of the network’s hash rate. The graph below displays four examples of significant downward adjustments from the past. March 2020, May 2020, October 2020, and July 2021 saw these occurrences, with the adjustment in July 2021 seeing the biggest decline.
Using the Hash Ribbon Indicator to mine bitcoins
The Hash Ribbon indicator shows the distress of Bitcoin miners, which is caused by the mining of BTC being too costly in comparison to its price. High distress indicates miner capitulation, which occasionally can signal a market bottom.
The chart below displays the BTC price along with the 60-day and 30-day hash rate moving averages (MA). The ribbon turns dark red when the 30-day MA crosses above the 60-day MA, signalling a bullish scenario and capitulation (miners giving up) as well as a potential bottom. Similar to this, a bearish scenario arises when the 60-day MA crosses over the 30-day MA and the ribbon turns light red.
To read our blog on “Bitcoin experiences record outflows, while Ethereum defies the trend,” click here