Bitcoin is seeing a similar setup in difficulty adjustments to what it saw back at the 2018 lows...

We all know that bitcoin just recently had a difficulty adjustment down, or if you don't know, now you do...

This was the second consecutive downward adjustment to the difficulty levels in a row.

That may not sound like that big of a deal, but if we get another downward adjustment 11 days from now, it just might be.

And as it stands right now, we are seeing forecasts for exactly that...

Check it out:

(Source: https://btc.com/stats/diff)

As you can see the current forecasts are for a downward adjustment in difficulty of about 5%.

Why does this matter?

Well, it may not matter much, or it might matter quite a bit.

For some perspective we have only seen 3 consecutive difficulty adjustments down 2 other times in bitcoin's entire history.

The other two were in 2011 and in 2018.

The most recent one in 2018 happened in December as bitcoin was making lows around $3k.

Fast forward 6 months later and bitcoin was trading for close to $14k.

Which is exactly why this one may matter quite a bit...

Though keep in mind that the situations surrounding these difficulty adjustments are slightly different than the previous one.

Bitcoin is still sorting itself out after its most recent halving less than one month ago.

The one back in 2018 saw the difficutly adjustments down because the price kept dropping and it was forcing miners out of the game due to declining profitability.

Two very different situations.

We will see if that plays a role in how this one ultimately impacts the price, but a similar type of price reaction to what happened in 2018 would indicate a bitcoin price around $40k by the end of this year...

Sounds crazy right?

We shall see...

Stay informed my friends.

-Doc