Bitcoin price again slumped below $17,000 after holding upright for some time during the previous trading day. Meanwhile, the Bitcoin (BTC) hash rate has also dropped as the miner continue to struggle as the price is undergoing a massive correction phase. Moreover, the BTC mining difficulty is expected to witness a huge adjustment.
As per the new update released by a popular on-chain data provider, Glassnode, the Bitcoin network has decreased the difficulty by more than 7% which is the largest in the past 12 months.
“The Bitcoin protocol has just decreased mining difficulty by -7.3%, the largest downwards adjustment since July 2021,”
“Given depressed coin prices, rising energy costs, and debt burdens, the mining industry is under extreme stress,”
On the other hand, the Bitcoin hash-ribbon indicator also suggests that the crypto is due for yet another massive downfall.
As seen in the above image, the hash ribbon is closer to getting inverted. Previously, when the hash-ribbons were inverted, the Bitcoin (BTC) price underwent significant price correction. Hence a similar action is speculated presently as the difficulty adjustment appears to be in response to the falling BTC hash rate.
“The difficulty adjustment is in response to falling Bitcoin hash-rate.
This has resulted in yet another inversion of the Hash-ribbons, as the 30DMA dives below the 60DMA.
The last hash-ribbon inversion occurred in early June 2022,”
Moreover, Bitcoin price is displaying a significant variation climbing in and out of the levels at $17,000. Hence the Bitcoin realised cap which shows the net sum of capital inflows and outflows has declined heavily. The capital inflows since May 2021 have been flushed out, signalling a capital reset is underway.
Source: https://coinpedia.org/price-analysis/bearish-clouds-haunt-the-btc-price-rally-will-bitcoin-be-stuck-under-miners-capitulation/