6 de November de 2024

Difficulty ribbons during the current cycle

Since March, during hashtag#Bitcoin’s price consolidation, the Difficulty ribbons have identified points that, as observed in mid-2022 and early 2023, have historically been prime opportunities to enter the market. In this chart, green and orange zones represent moments with high probabilities of favorable entry points, especially from a medium- to long-term investment perspective.

The Difficulty ribbons illustrate how miner selling pressure impacts Bitcoin’s price. When the network difficulty slows its growth, less profitable miners tend to exit the market, leaving only the strongest, who need to sell fewer coins to cover operating costs. This reduces selling pressure and creates a more favorable environment for price growth.

Optimal points to acquire hashtag#Bitcoin often coincide with areas where the ribbons compress, which allows us to observe the rate of change in network difficulty. While price corrections can occur afterward, these zones have historically proven to be excellent opportunities for establishing a solid position in Bitcoin.

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