Following up on our previous overview of what three bitcoin market metrics showed last week, let's take a look at a brand new indicator developed by the popular bitcoin analyst Willy Woo; the Bitcoin Difficulty Ribbon.

"The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty," Woo tweeted recently, adding that when the ribbon compresses, or flips negative, these are the best time to buy in and get exposure to Bitcoin.

And here is the ribbon itself:
(The blue line is the price of bitcoin)

Source: charts.woobull.com

According to the indicator, the best buy opportunity occurred towards the end of last year, when the ribbon "flipped" shortly after the strong sell-off in November. Now, however, it seems that the ribbon has entered an expansion phase, meaning more and more miners are jumping on the bandwagon. (The Bitcoin mining difficulty increased almost 11% on Monday and is estimated to jump another 11% in 12 days, according to major Bitcoin mining pool BTC.com. Meanwhile, hashrate, or the computing power of the network, is at a record high now).