This week could set in a new Bitcoin bullish phase. The trigger for the new bull run will be Bitcoin’s difficulty adjustment which will take place on Thursday. For some analysts, the new bullish wave is nearly a certainty. Backed by 9 years of history, the analyst expects this time to be no different. In the past, the difficulty adjustment has ushered in a new bullish phase without fail. This week will see a repeat of the same and the bulls have $10K insight over the coming days.
The historic pattern was first pointed out by crypto analyst PlanB. In a tweet, he illustrated how Bitcoin has always soared after a difficulty adjustment. PlanB’s predictions have in the past proven reliable and he is most famous for his stock-to-flow (S2F) model which predicts Bitcoin will reach $100,000 by 2021.
His prediction shows that there will be a 4% increase in difficulty following the adjustment. This is set to see prices increase as it adjusts to the mining difficulty. Prior to the adjustment, many anticipating a bull run will hold out and accumulate. This in itself could boost Bitcoin and set a launchpad in which prices can shoot from following the adjustment.
Historic Pattern Not A Guarantee For Bitcoin Bullish Phase
While unlikely, after 9 years of success, past events are not a guarantee. Especially for Bitcoin whose price movement is based on a number of metrics that are not mainstream. So, though many are optimistic that the adjustment will trigger a new bullish wave, there is no guarantee. Other triggers such as a negative new regulation, or any of the other thousands of headlines that haunt the market could spark a bearish run that overshadows the adjustment.
Bitcoin Market Update
At the time of writing this, Bitcoin is exchanging for $8,600. For the last few days, the digital asset has been trading sideways unable to break above $8,800. The bulls are currently struggling to support the $8,400 position. A further downside below this support could easily see Bitcoin retest the recent $7,400 lows. A more bullish outlook puts Bitcoin above $9,500 with the $10K position the key target for the bulls in the weeks to come.