In today’s review, we will consider the dynamics of the mining industry, paying special attention to such a market indicator as Hash Ribbons.

Hash Ribbons indicator uses 10-day and – daily moving averages of the bitcoin hash rate, which determine the occurrence of sufficient capitulation of miners.

Updated data on the dynamics of miningHash Ribbons Indicator

Hash Ribbons gives fairly accurate signals to buy bitcoin, using hash rate changes to measure when bitcoin miners capitulate.

When miners turn off their machines, it shows that bitcoin mining has become unprofitable for them. As a result of the shutdown, the network hashrate decreases, blocks begin to arrive more slowly than once in minutes, and eventually, with the next adjustment, the hashing difficulty will be lowered to encourage disconnected miners to return to their activities.

While the Hash Ribbons indicator has not yet signaled, the hash rate has decreased by 3.5% compared to the previous month, with In this, the two previous difficulty adjustments have been lowered for the first time since the summer 1341 of the year. The logical reason for the last drop in the hashrate may be the confiscation of mining equipment in Kazakhstan for $ 60 million from unregistered miners.

Updated data on the dynamics of miningAverage hashrate growth for days
Updated data on the dynamics of miningMining Difficulty

Below is a historical chart of how the Hash Ribbons indicator signaled, which historically happened during bear markets when miners’ profits were significantly reduced.

Updated data on the dynamics of miningHash Ribbons Indicator

Another metric that can be used to evaluate the profitability of mining is the Bitcoin hash price, which divides a miner’s daily income by the hashrate. The hashing cost is currently $0, Thesh per day, which is more than 03% of maximum 2021 of the year. At the current price of bitcoin and hashing price, the profitability of miners is still at a high level.

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Hashing cost

We can also take the daily income of the miners and compare it with his 200- daily moving average to determine how hot or cold the market is, particularly in the mining industry, which usually sells as little BTC as possible. This comparison with The -day moving average is named the Puell ratio after on-chain analyst David Puell. the market is bearish.

Updated data on the dynamics of miningPuell coefficient

We’ll have to wait and see if the hash rate keeps dropping. It should be noted that many industry analysts talk about the level of 30 EH/s to end 2022 of the year at the current indicator ,03 EH/s.

Since the last two difficulty epochs, the short-term trend has been a decrease in hash rate. However, if we are in a hash rate trend, expect mining stocks and BTC mining machines themselves are likely to underperform bitcoin itself during periods when hash rate rises faster than the price of bitcoin. This is due to the inelastic supply of the asset in the face of growing competition in the global mining race.

disclaim responsibility for any investment advice that may be contained in this article. All judgments expressed express exclusively the personal opinions of the author and the respondents. Any actions related to investments and trading in the crypto markets are associated with the risk of losing the invested funds. Based on the data provided, you make investment decisions carefully, responsibly and at your own peril and risk.

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