diff --git a/src/test/pow_tests.cpp b/src/test/pow_tests.cpp
index bda6dca5b..356d64430 100644
--- a/src/test/pow_tests.cpp
+++ b/src/test/pow_tests.cpp
@@ -1,149 +1,190 @@
 // Copyright (c) 2015 The Bitcoin Core developers
 // Distributed under the MIT/X11 software license, see the accompanying
 // file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #include "pow.h"
 #include "chain.h"
 #include "chainparams.h"
 #include "random.h"
 #include "test/test_bitcoin.h"
 #include "util.h"
 
 #include <boost/test/unit_test.hpp>
 
 BOOST_FIXTURE_TEST_SUITE(pow_tests, BasicTestingSetup)
 
 /* Test calculation of next difficulty target with no constraints applying */
 BOOST_AUTO_TEST_CASE(get_next_work) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
     int64_t nLastRetargetTime = 1261130161; // Block #30240
     CBlockIndex pindexLast;
     pindexLast.nHeight = 32255;
     pindexLast.nTime = 1262152739; // Block #32255
     pindexLast.nBits = 0x1d00ffff;
     BOOST_CHECK_EQUAL(
         CalculateNextWorkRequired(&pindexLast, nLastRetargetTime, params),
         0x1d00d86a);
 }
 
 /* Test the constraint on the upper bound for next work */
 BOOST_AUTO_TEST_CASE(get_next_work_pow_limit) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
     int64_t nLastRetargetTime = 1231006505; // Block #0
     CBlockIndex pindexLast;
     pindexLast.nHeight = 2015;
     pindexLast.nTime = 1233061996; // Block #2015
     pindexLast.nBits = 0x1d00ffff;
     BOOST_CHECK_EQUAL(
         CalculateNextWorkRequired(&pindexLast, nLastRetargetTime, params),
         0x1d00ffff);
 }
 
 /* Test the constraint on the lower bound for actual time taken */
 BOOST_AUTO_TEST_CASE(get_next_work_lower_limit_actual) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
     int64_t nLastRetargetTime = 1279008237; // Block #66528
     CBlockIndex pindexLast;
     pindexLast.nHeight = 68543;
     pindexLast.nTime = 1279297671; // Block #68543
     pindexLast.nBits = 0x1c05a3f4;
     BOOST_CHECK_EQUAL(
         CalculateNextWorkRequired(&pindexLast, nLastRetargetTime, params),
         0x1c0168fd);
 }
 
 /* Test the constraint on the upper bound for actual time taken */
 BOOST_AUTO_TEST_CASE(get_next_work_upper_limit_actual) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
     int64_t nLastRetargetTime = 1263163443; // NOTE: Not an actual block time
     CBlockIndex pindexLast;
     pindexLast.nHeight = 46367;
     pindexLast.nTime = 1269211443; // Block #46367
     pindexLast.nBits = 0x1c387f6f;
     BOOST_CHECK_EQUAL(
         CalculateNextWorkRequired(&pindexLast, nLastRetargetTime, params),
         0x1d00e1fd);
 }
 
 BOOST_AUTO_TEST_CASE(GetBlockProofEquivalentTime_test) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
     std::vector<CBlockIndex> blocks(10000);
     for (int i = 0; i < 10000; i++) {
         blocks[i].pprev = i ? &blocks[i - 1] : nullptr;
         blocks[i].nHeight = i;
         blocks[i].nTime = 1269211443 + i * params.nPowTargetSpacing;
         blocks[i].nBits = 0x207fffff; /* target 0x7fffff000... */
         blocks[i].nChainWork =
             i ? blocks[i - 1].nChainWork + GetBlockProof(blocks[i - 1])
               : arith_uint256(0);
     }
 
     for (int j = 0; j < 1000; j++) {
         CBlockIndex *p1 = &blocks[GetRand(10000)];
         CBlockIndex *p2 = &blocks[GetRand(10000)];
         CBlockIndex *p3 = &blocks[GetRand(10000)];
 
         int64_t tdiff = GetBlockProofEquivalentTime(*p1, *p2, *p3, params);
         BOOST_CHECK_EQUAL(tdiff, p1->GetBlockTime() - p2->GetBlockTime());
     }
 }
 
 static CBlockIndex GetBlockIndex(CBlockIndex *pindexPrev, int64_t nTimeInterval,
                                  uint32_t nBits) {
     CBlockIndex block;
     block.pprev = pindexPrev;
     block.nHeight = pindexPrev->nHeight + 1;
     block.nTime = pindexPrev->nTime + nTimeInterval;
     block.nBits = nBits;
 
     return block;
 }
 
 BOOST_AUTO_TEST_CASE(retargeting_test) {
     SelectParams(CBaseChainParams::MAIN);
     const Consensus::Params &params = Params().GetConsensus();
 
-    std::vector<CBlockIndex> blocks(1013);
+    std::vector<CBlockIndex> blocks(115);
+
+    const arith_uint256 powLimit = UintToArith256(params.powLimit);
+    arith_uint256 currentPow = powLimit >> 1;
+    uint32_t initialBits = currentPow.GetCompact();
 
     // Genesis block?
     blocks[0] = CBlockIndex();
     blocks[0].nHeight = 0;
     blocks[0].nTime = 1269211443;
-    blocks[0].nBits = 0x207fffff;
+    blocks[0].nBits = initialBits;
 
     // Pile up some blocks.
-    for (size_t i = 1; i < 1000; i++) {
-        blocks[i] =
-            GetBlockIndex(&blocks[i - 1], params.nPowTargetSpacing, 0x207fffff);
+    for (size_t i = 1; i < 100; i++) {
+        blocks[i] = GetBlockIndex(&blocks[i - 1], params.nPowTargetSpacing,
+                                  initialBits);
     }
 
     CBlockHeader blkHeaderDummy;
 
     // We start getting 2h blocks time. For the first 5 blocks, it doesn't
     // matter as the MTP is not affected. For the next 5 block, MTP difference
-    // increases but stays bellow 12h.
-    for (size_t i = 1000; i < 1010; i++) {
-        blocks[i] = GetBlockIndex(&blocks[i - 1], 2 * 3600, 0x207fffff);
+    // increases but stays below 12h.
+    for (size_t i = 100; i < 110; i++) {
+        blocks[i] = GetBlockIndex(&blocks[i - 1], 2 * 3600, initialBits);
         BOOST_CHECK_EQUAL(
             GetNextWorkRequired(&blocks[i], &blkHeaderDummy, params),
-            0x207fffff);
+            initialBits);
     }
 
     // Now we expect the difficulty to decrease.
-    blocks[1010] = GetBlockIndex(&blocks[1009], 2 * 3600, 0x207fffff);
+    blocks[110] = GetBlockIndex(&blocks[109], 2 * 3600, initialBits);
+    currentPow.SetCompact(currentPow.GetCompact());
+    currentPow += (currentPow >> 2);
     BOOST_CHECK_EQUAL(
-        GetNextWorkRequired(&blocks[1010], &blkHeaderDummy, params),
-        0x1d00ffff);
+        GetNextWorkRequired(&blocks[110], &blkHeaderDummy, params),
+        currentPow.GetCompact());
+
+    // As we continue with 2h blocks, difficulty continue to decrease.
+    blocks[111] =
+        GetBlockIndex(&blocks[110], 2 * 3600, currentPow.GetCompact());
+    currentPow.SetCompact(currentPow.GetCompact());
+    currentPow += (currentPow >> 2);
+    BOOST_CHECK_EQUAL(
+        GetNextWorkRequired(&blocks[111], &blkHeaderDummy, params),
+        currentPow.GetCompact());
+
+    // We decrease again.
+    blocks[112] =
+        GetBlockIndex(&blocks[111], 2 * 3600, currentPow.GetCompact());
+    currentPow.SetCompact(currentPow.GetCompact());
+    currentPow += (currentPow >> 2);
+    BOOST_CHECK_EQUAL(
+        GetNextWorkRequired(&blocks[112], &blkHeaderDummy, params),
+        currentPow.GetCompact());
+
+    // We check that we do not go below the minimal difficulty.
+    blocks[113] =
+        GetBlockIndex(&blocks[112], 2 * 3600, currentPow.GetCompact());
+    currentPow.SetCompact(currentPow.GetCompact());
+    currentPow += (currentPow >> 2);
+    BOOST_CHECK(powLimit.GetCompact() != currentPow.GetCompact());
+    BOOST_CHECK_EQUAL(
+        GetNextWorkRequired(&blocks[113], &blkHeaderDummy, params),
+        powLimit.GetCompact());
+
+    // Once we reached the minimal difficulty, we stick with it.
+    blocks[114] = GetBlockIndex(&blocks[113], 2 * 3600, powLimit.GetCompact());
+    BOOST_CHECK(powLimit.GetCompact() != currentPow.GetCompact());
+    BOOST_CHECK_EQUAL(
+        GetNextWorkRequired(&blocks[114], &blkHeaderDummy, params),
+        powLimit.GetCompact());
 }
 
 BOOST_AUTO_TEST_SUITE_END()