Bitcoin miners should breathe a sigh of relief as the difficulty level is about to plummet.

The difficulty of mining Bitcoin (BTC) is about to drop dramatically, approaching levels last seen in January, although the coin's price is much higher than it has been since the start of the year, indicating good news for miners.

As of 7:17 UTC, Bitcoin mining difficulty, or the indicator of how difficult it is to compete for mining rewards, is predicted to drop more than 11% in a day, according to mining pool BTC.com.

For three factors, this drop would be significant:

1. It will reduce the difficulty to 20.88 T, the lowest level since January of this year when the difficulty was increasing. 

2. Just nine declines have occurred in the last year, or since the beginning of April 2020, to be exact. Following November's 16 percent decrease, which was the second-largest in the network's history, this one will be the second-highest.

3. At the same moment as the difficulty is plummeting, bitcoin's price is at its highest point since the start of the year. BTC was trading at USD 30,700 on January 1. Since then, the price has risen to new all-time highs, with the current price standing at USD 54,444 - a 77 percent increase in just four months.

To preserve the usual 10-minute block time, Bitcoin's mining difficulty is changed every two weeks (that is, every 2016 blocks). On April 29, the 7-day simple moving average block time was 10.8 minutes.

Hashrate, or the network's computing capacity, is on the rise again, according to BitInfoCharts.com. Between April 16 and April 23, the 7-day simple moving average hashrate fell by 21%. It has been steadily increasing since then, growing 16 percent to 139.35 Eh/s on April 29.

Meanwhile, according to ByteTree, miners have spent more coins than they have kept in the last five weeks. Miners typically create inventory during periods of market weakness and sell during periods of market power.