A bitcoin (Bitcoin) Mining indicators before major BTC price increases flashed again.
The blockchain analysis platform Glassnode discovered the golden cross between the 30-day and 60-day moving averages of the Bitcoin hash band.In theory, such a crossover Express Price momentum has turned positive from negative to positive.
Hashband is based on Bitcoin’s network hash rate behavior and is designed to tell investors when prices go up. Simply put, they show when Bitcoin has become more expensive relative to the basic cost of mining.
During this period, miners’ income in U.S. dollars decreased Bitcoin price correctionTherefore, in order to pay for operating costs, they sell newly minted bitcoins to raise funds. They also tend to shut down machines to reduce operating costs, which leads to a drop in the hash rate of the Bitcoin network.
But due to Bitcoin’s automatic difficulty adjustment, the hash rate will be restored later. This reduces mining costs and makes it cheaper for less efficient miners to join the competition. In doing so, Miners also accumulate coins, Thus ending the surrender period.
Therefore, the Hash Ribbon Demonstrate the emotional transformation of miners From surrender to accumulation. This provides traders with a way to determine the bottom of the potential price of the spot market.
Hash Band Fractal Predicts Bitcoin Bull Market
Recent history shows that the price of Bitcoin follows the hash ribbon signal.
For example, the figure below illustrates multiple instances where the crossover between the 30-day (green) and 60-day (blue) hash band moving averages prompted Bitcoin bulls to pursue the upside.
For example, the so-called Supply austerity event December 2020 coincides with the cross of the green and blue moving averages. The closing price of Bitcoin that month was $28,990, and it soared to $62,971 on April 14.
Similarly, the bear market surrendered in 2019, the mini bear market cycle in January 2020, The crash caused by the coronavirus in March 2020 The halving event in May coincided with the crossover of the green and blue moving averages. It was closely followed by the rise in the Bitcoin market.
The recent bullish crossover is part of what Glassnode calls the “great migration recovery”. In detail, China cracks down on the crypto industry May forced regional miners to stop operations.Some decided to shut down completely under Beijing’s regulatory supervision, while others Transfer their mining operations abroad.
During the exodus from the Chinese mining community, the hash rate of Bitcoin plummeted from 180.66 million terahash per second (TH/s) on May 11 to 84.79 million terahash per second in July, a drop of more than 53%.
Glassnode pointed out: “Historically, when the worst mining impact ends and recovery is underway, the 30D hash band will exceed 60D.”
At the time of writing, Bitcoin is trading at close to $45,200, a 55% increase from the July 20 low of $29,301.
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