According to this On-Chain Data, New Bull Cycle is about to Begin for Bitcoin

Every move that Bitcoin makes is recorded in real-time in the form of on-chain data, which is later on used to make multiple predictions by crypto analysts and traders. This data is accessible to everyone all the time, and that is why many crypto enthusiasts are always cracking away on this data to build predictions for new bull moves and rallies that are about to accompany Bitcoin. Recently, the mining indicators for Bitcoin are at that particular level where these predict a very large upward move. If you are associated with the crypto market one way or the other, then you are already affiliated with what did China do with crypto miners and how the country managed to uproot the whole organization from its grounds.

Due to this, many crypto miners were forced to move their operations to more friendly spaces such as Europe and the United States. It took some time, but eventually, the mining performance for Bitcoin stabilized, and the market was all excited and dandy about it. Mining indicators suggest the current difficulty to mine specific cryptocurrencies along with many other things. The indicator uses moving averages to determine the exact difficulty of mining for Bitcoin. This indicator adds a standard deviation true difficulty ribbon compression.

Signs of Bitcoin Bullish Run

A value between 0.01 and 0.05 indicates an upcoming bearish run that will stomp the price and take the cryptocurrency to new bottoms. For the year 2020, this indicator remained in the upper region. In the July of 2021, the difficulty compression reached a high of 0.167, but now, when Bitcoin has achieved a new all-time high, the current rating of the indicator is still 0.06. There haven’t been many episodes in which the compression ribbon moved points to the upper region other than in 2012, 2015, and 2019.

Looking at this historical data suggests that when the compression ribbon is in the bottom low, there might be chances of the corrections to interact with Bitcoin, eventually leading to a big bullish run. But the all-time high price of Bitcoin, on the other hand, might be able to trigger a new bullish cycle and the origin of a new all-time high price for Bitcoin eventually.

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