The Biggest BTC Mining Difficulty Adjustment & What It Tells Us About Bitcoin Price

The Bitcoin Mining Difficulty has increased by 21.5%. This is the largest positive Difficulty adjustment in almost 7 years. Find out what this tells us about the possible Bitcoin price trend in the coming weeks.A high Difficulty means that additional computing power is needed to verify transactions entered on the Bitcoin blockchain. The higher the Difficulty required to create a block, the better the network’s security, as attackers would need enormous resources to take control.However, an increased Difficulty can also mean that their operation is no longer profitable for many BTC miners, and they have to shut down their mining rigs. If this applies to many miners, it is also called miner capitulation.Miner capitulation thus occurs in the bitcoin market when mining is largely no longer profitable. When profitability drops, miners naturally sell their BTC holdings and capitulate in response to deteriorating market sentiment. In theory, when miners start selling their holdings, this can lead to significant selling pressure from miners.How we can take advantage of this knowledge to get in on the Bitcoin price in time for its next rise is what we’re going to look at now.The Hash Ribbons indicator is an excellent tool to turn this data into useful information about the Bitcoin price when it comes to the Difficulty and, therefore, the Hash Rate on the Bitcoin network. It is not for nothing that it is one of the few indicators that we have explicitly drawn attention to in our Bitcoin rate guide.The Hash Ribbons indicator uses the 30 with the 60 SMA of the hash rate of Bitcoin and warns of a miner capitulation when the 30 crosses the 60 SMA of the hash rate from above nor below and produces a buy signal when the 30 breaks the 60 SMA from below to above.Whenever…