A rare bullish bitcoin signal, the difficulty ribbon compression, has started pumping up for the first time since the bull run started.
The Bitcoin Difficulty Ribbon Compression Goes Up
As pointed out by a BTC analyst on Twitter, the difficulty ribbon compression seems to be going up for the first time since the bull run started.
The indicator is a measure of the moving averages of bitcoin mining difficulty. The mining difficulty metric can be calculated by estimating the number of hashes for mining a block.
To properly quantify these values, the BTC difficulty ribbon compression uses a normalized standard deviation. Higher values have historically been associated with the price moving up, while lower values suggest a downward trend.
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Now, here is how the chart looks like for the BTC difficulty ribbon compression in the past decade:
BTC difficulty ribbon compression seems to be sharply rising |