Bitcoin Price Analysis

Bitcoin price analysis; The status of the hard bar index indicates a possible climb


For the first time since the start of the current uptrend, the stiffness index has risen, signaling a possible price jump.

to the the report “This is the first time since the uptrend began,” said a Twitter analyst, referring to the Hard Disk Density Index.

This index is calculated by measuring the moving averages of bitcoin hardness. In calculating this index, it is also necessary to estimate bitcoin mining hashes.

To quantify the information obtained, bitcoin hardness density uses a normalized standard deviation. Historically, when the figures obtained are higher than before, prices are likely to jump. On the other hand, as this amount decreases, the price may also decrease.

The chart below examines the status of this index over the past 10 years. Looking at this chart, it can be said that in the past, price fluctuations were related to fluctuations in this index.

Hardness density index status

According to the chart, when the index reaches very low levels, bitcoin also approaches the stock floor. On the other hand, with the increase of this index, the price will increase. It should not be forgotten that this index is currently increasing.

Of course, it should be remembered that this index takes into account the hardness of the network, and the hardness of the network is currently greatly reduced due to Chinese constraints, and there are special conditions.

As bitcoin miners migrate to different parts of the world, including the United States, the network hash rate is increasing. In other words, we can expect to see hash rates return to normal soon.

Bitcoin is currently trading in the $ 31,500 range and has fluctuated 0.5 percent over the past 24 hours. Bitcoin lost 4% of its value last week and 17% last month.

Bitcoin price chart

Since we have been witnessing bitcoin fluctuations in the range of $ 30,000 to $ 40,000 for weeks, it is not possible to say with certainty where the digital currency will go next.

If history repeats itself and the price of bitcoin rises at the same time as the hard density index, we can expect to see a jump soon. As we said before, the current situation is more special than ever and we can not rely on this indicator much.

.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button