Bitcoin (BTC) network’s mining difficulty recorded a new all-time-high (ATH) on Oct. 23 as the difficulty increased by 3.4% to reach 36.84 trillion.
At the same time, the Difficulty Ribbon has started to compress, which historically indicates good buying opportunities.
The chart below demonstrates mining difficulty with the orange line. The final 3.4% spike recorded on Oct. 23 pushed the difficulty line up near the 160Z borders.
Bitcoin mining difficulty
The last time Bitcoin mining difficulty increased was on Oct.10, when it spiked by 13.5%. As seen in the chart above, that spike was the most significant increase in Bitcoin difficulty throughout 2022.
The Difficulty Ribbon Compression uses 200-day, 128-day, 60-day, 40-day, 25-day, and 14-day simple moving averages of the Bitcoin mining difficulty to calculate the ribbon indicator.
Bitcoin Difficulty Ribbon
The chart above demonstrates the difficulty of ribbon compression by the orange line. The difficulty ribbon has been moving within the green zone since nearly the year’s second half.
With the most recent difficulty adjustment, the difficulty ribbon compression increased and left the green zone. Historically, periods when the ribbon compresses have been good buying opportunities.
Posted In: Bitcoin, Mining
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