New chart: Hash Ribbons!
This one was way overdue.
Today we introduce the famous Hash Ribbons chart, created by Charles Edwards (@caprioleio on twitter) and first introduced in this article.
Hash Ribbons are the 30-day and 60-day moving averages of the total network's estimated hash rate. They indicate whether the short-term trend of the hash rate is up or down. Normally, the hash rate increases over time, with the faster 30-day moving average above the slower 60-day moving average.
When the faster one crosses below the slower one, it indicates a difficult time for miners, usually occurring after halvings when their revenue is suddenly cut in half.
When the faster moving average crosses above the slower one again, it indicates a rebound of the hash rate, which is normally correlated with a positive move in the price of Bitcoin.
Currently, the faster moving average is growing again and will soon surpass the slower one. This means the total hash rate, which is correlated with the price, has started to grow again.
That’s all for today. Have a great one!