This could be a sign that the Bitcoin bear market is coming to an end

Last week, Bitcoin saw various ups and downs for its on-chain index as well as its price. Most of the time, the leading cryptocurrency doesn’t seem to be bringing much profit. But this week BTC has a lot of changes in the indices while others are going the old way. However, one particular metric has documented very infrequent movements. This could be the necessary sign to confirm the end of the bear market.

Bitcoin kno more fluctuations?

For the past 7 days, the crypto king has consolidated in the $ 32,000- $ 36,000 range, hitting a weekly high of $ 36,460 and a low of $ 32,775. This could be a sign that BTC is no longer volatile and is entering a long-term consolidation phase. In fact, its influence can also be reflected in a number of other metrics such as hashrate and mining algorithm.

Daily Bitcoin Price Chart for Week 27 | source: Glass knot

The great migration

The effects of the Chinese government’s mining ban peaked when Bitcoin was negatively impacted quite badly. For the first time in history, hashrate dropped the most, and mining time peaked. The average block interval is the time it takes to mine each block on the blockchain, and as the hashrate decreases, this “execution time” increases.

During the week, an average of 24 hours, the time to dismantle a block is 32.6 minutes or 1958 seconds. This is 226% longer than the average block time of 600 seconds. While this may have been temporary, it has shown the effects of the large-scale mining migration.

BILLIONaverage block time of Bitcoin (24 hours MA) | Source: Glass knot

What’s noteworthy, however, is that the average block time was this high the last time Bitcoin was born. In 2009, BTC didn’t even have a value. In addition, this peak occurred simultaneously with the decline in the average hashrate.

BILLIONgood time Grade level slowest in history | Source: Glass knot

Hashrat fall

Typically, the hashrate on the network ranges from 160 EH / s to 200 EH / s, and the average is 180 EH / s. However, this week when the average block time peaked, the hashrate was at a local low of 65 EH / s. So far, the hashrate has fluctuated between 88-110 EH / s due to the mining ban in China. Even so, the decline was once estimated to be 38 to 49% below the current average. As a result, the mining difficulty is also affected.

Average bitcoin hashrate (MA 24 hours) | Source: Glass knot

Reversible difficulty range

The difficulty area shows the effect of the adjusted level of difficulty. Last week the difficulty had to be reduced by 27.94%, the biggest adjustment in history. Thus there was a reversal of the difficulty band. Difficulty band reversals are rare and show miners surrender.

The reason it is not common is that such events only occur at the end of a bear market or after the halving.

Bitcoin difficulty range | Source: Glass knot

This could be a sign that the speculative “bear market” we are in is coming to an end. However, this finding does not signal a rally for Bitcoin.

You can see the BTC price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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