Mining difficulty could be an indicator for predicting BTC prices. All three of the major bull runs in Bitcoin’s history started after mining difficulty reached its bottom, meaning the market could see robust gains this year, says crypto researcher PlanB.
Predicting Bitcoin bull runs with mining difficulty
Despite being known for its incredibly high volatility, the crypto market moves in cycles. Crypto analysts use a variety of different tools and factors to predict how long with each cycle last and how much different factors will sway the market.
Moving averages are a favorite among analysts, as they’re able to offer a fairly accurate prediction of major price spikes. However, crypto researcher PlanB found a different, possibly more accurate way to predict Bitcoin’s price movement.
In a Twitter thread, the researcher explained how the past three major Bitcoin bull runs started when mining difficulty reached its bottom.