An important parameter on the chain suggests that Bitcoin may still form a long-term fund soon. The difficulty of mining a Bitcoin block recently saw the most significant negative decline since July 3, 2021.
Another day, another drama
Capitulations and miners’ sales impacted Bitcoin’s mining difficulty. The decline is also linked to the heat wave that hit Texas, one of the largest mining hubs in the United States.
Miners have reportedly shut down their machines to reduce the demand for energy on energy grids facing the heatwave.
Historically speaking, miners’ capitulation generally signals the end of the bear market. As things stand, we are looking at the formation of a long-term low for Bitcoin, which means short-term pain for traders.
But traders can save a breath knowing it will translate into long-term gains for them.
Another recent study pointed to a possible underlying formation for Bitcoin. The king’s coin has floated below its realized price since June 13, according to a CryptoQuant analyses.
It remained below this threshold for 20 weeks between November 2018 and April 2019.
B.but the metric has recently seen a sharp rise. This can be seen as a consequence of the latest bullish charge.
The question is whether it will stay above this threshold or will it fall below this line again. Meanwhile, an interesting activity has been detected since the end of the whales.
The whales are waking up
With the sharp drop in Bitcoin prices during the first half of 2022, whales have steadily started piling up.
According to a recent CryptoQuant analyseswhales increased in the number of properties by 1k and 10k BTC.
This could mean a turnaround in medium and long-term cycles as the buildup of whales suggests an attractive entry point for retail traders.
What time for BTC
Between falling prices and whale movements, BTC continues to find itself at a defining moment.
The token fell over the weekend after a significant sell-off.
At press time, the king’s coin was trading at just under $ 21,200 after dropping 3% on the last day. The volume at the time of this writing was on a downward trajectory.
By looking at the price indicators, it can be clearly understood that BTC’s fall to the $ 20,000 level is imminent. Traders, therefore, can take this opportunity to go short.