The data shows that Bitcoin (BTC) is in a close battle between bulls and bears and the network is now reacting.

Observers revealed that the Bitcoin difficulty hit an 18-week record this week, to see its first decline since July.

Difficulty adjusted for 20% BTC price drop

Amid cyclical short-term price moves, concerns remain that Bitcoin will not be able to pull back from its recent all-time high of $ 69,000.

After surprising analysts and even rejecting a lifelong rate pattern, BTC / USD looked like uncharted territory last month – although it nearly doubled since the start of the year.

“With Bitcoin now 20% below its all-time high, mainstream media headlines have claimed Bitcoin has entered a bear market,” summarized online chain analyst Glassnode in its latest weekly newsletter, The 7 days On-Chain. ”

“However, some readers may be surprised that this current market correction in 2021 is actually the least serious. Some might even say business as usual for a Bitcoin. HODLer.”

However, the basics of networking are currently up to date. On Sunday, the difficulty decreased by 1.5% – after having increased continuously for nine consecutive periods. The next correction is now expected to decrease further by almost 2%.

Long-term owner spending creates “uncertainty”

When measuring the landscape, Glassnode does not rule out a further drop in prices.

Related: Bitcoin tests traders’ nerves as analysts reissue a BTC price prediction of $ 400,000

The combination of long-term owner sales, high opening prices in the derivatives market and other phenomena could trigger the downtrend to continue to new local lows.

“Open interest leverage on options and futures contracts at or near ATH is a concern about the potential for increased ‘relief’. The deposit rates show only a slightly positive divergence, which makes both long-term and short-term scenarios plausible ”, so the conclusion.

Regarding LTH behavior, the following has been added:

“Long-term owners have delivered 5.8% of the accumulated supply since March and there is some uncertainty due to their spending behavior.”

Meanwhile, while discussing open interest, analyst Willy Woo noted that activity in the post-ETF environment could simply stay higher and not necessarily signal future turmoil.

“IMO it is not necessary to rinse,” he said tweeted.

“That could be a sign of the times to soak up cash and make post-trade futures ETFs.”

BTC / USD was hovering around $ 56,000 at press time on Thursday after spending the last 24 hours repeating a run to $ 59,000 and subsequent rejection.

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