Researchers Concur Current Bitcoin Market Cycle is Only Just Beginning

Bitcoin price cycles can be influenced by a number of factors, FOMO and public sentiment is one, and mining profitability and difficulty is another. Two separate Bitcoin data researchers have offered their insights as to why the current BTC market cycle still has a long way to go.

BTC Mining Profitability and Difficulty

One measure of the ebbs and flows of Bitcoin markets is how miners interact with the network. Mining profitability and difficulty are intertwined so when it no longer becomes profitable to mine new blocks, the hardware is shut down until such a time that the difficulty drops to a point where it becomes profitable again.

Crypto researcher ‘PlanB’ has charted the past three major market cycles noting these exact points where miners have capitulated and difficulty has bottomed out. These correlate with Bitcoin price peaks and troughs over the past decade.

“After each ATH #bitcoin price drops until a lot of miners aren’t profitable. Miners switch off hardware (capitulate), hashrate drops, and difficulty adjusts downwards … until miners become profitable again and difficulty rises. Difficulty bottom (100%) starts a new bull market”

Looking at the current situation reveals that we are only just beginning the next market cycle in terms of Bitcoin price and the price at the difficulty bottom which was at the beginning of this year. The gradient of the patterns should also be noted indicating that, using this model, it will take much longer to reach the next peak than it did in previous cycles.

Adjusted Binary Bitcoin Days Destroyed

Another measure of market cycle peaks is adjusted binary BTC days…

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