Bitcoin Hash Rate Hits New All-Time High of 223.15m TH/s | And More in This Weeks Crypto Update.
- Axie Infinity: This Chart Pattern Calls for More Consolidation
- How Golden Crossover Signal Can Send Tron to $0.10
- Bitcoin Hash Rate Hits New All-Time High of 223.15m TH/s
Axie Infinity: This Chart Pattern Calls for More Consolidation
Axie Infinity’s (AXS) price action has been largely sideways but moving in an overall downward trend. The critical aspect of this consolidation pattern is that they have been followed by a breakout to the downside.
Consolidation — Breakout Pattern
Eventually, a breakout will occur whenever a cryptocurrency displays a consolidation pattern. Axie Infinity doesn’t follow a random consolidation — breakout pattern. The daily chart revealed that AXS’s price follows the same “staircase” effect that occurred during the 2021 bullish cycle.
During the 2021 bullish cycle, we had the stair-step pattern developing within an upward trajectory; right now, the same pattern forms along with a downward trend.
It’s no coincidence that each consolidation phase it’s replicated on the right side of the chart right near where, on the left side of the chart, we had the breakout to the upside. This can give us an idea of where the next consolidation phase might happen.
Additionally, we can measure the volatility inside this consolidation phases and estimate how big the next consolidation phase might be. As we move to the downside, the price volatility is between 25% and 78%.
This means that the bottom of the next consolidation phase can be anywhere between $25 and $10, from which hopefully we can see a breakout to the upside and the start of a new bullish cycle.
How Golden Crossover Signal Can Send Tron to $0.10
Tron (TRX) flashed the golden crossover signal, which is widely considered a technical buy signal. The bullish case scenario for this cryptocurrency is also supported by the higher highs and higher lows price structure which signals that an uptrend could be developing.
Golden Crossover Signal
Most traders only learn to follow the 50 and 200 simple moving averages. However, not many traders know that the golden crossover signal can also occur when the 50-day moving average crosses above the 100-day moving average.
Since the 100 period SMA is faster than the 200 periods SMA, we can detect a shift in the general market direction much earlier.
The above chart is the 1D chart of TRON against Tether. The 50 period SMA is marked with a Orange line, the 100 period SMA is marked with a blue line. On September 27, TRX triggered the golden crossover signal.
Price Structure
TRX’s price is now printing a series of higher highs followed by at least two higher lows, which signals that we’re starting to move upwards.
Additionally, based on the RSI oscillator, TRX made a new high in momentum readings which confirms the bullish sentiment.
Looking forward: There is not much resistance to the upside until the $0.10 psychological number. On the flip side, we have a strong support level at $0.058. As long as we stay above this support level, TRX has the potential to reach the $0.10 milestone.
What is TRON crypto and what is it used for
Founded by Justin Sun, TRON is a decentralized content entertainment platform that aims to bridge the gap between content creators and content consumers. The company uses blockchain technology, peer-to-peer (P2P) network and distributed storage technology.
What is a Golden crossover signal
The golden cross is a bullish breakout pattern formed from a crossover involving a security’s short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as the 50-day moving average) or resistance level.
As long-term indicators carry more weight, the golden cross indicates a bull market on the horizon and is reinforced by high trading volumes.
The term “golden cross” derives from the golden ratio, a number said to be found throughout nature and used by some traders to identify points of change or correction. The golden ratio is calculated as 1.618.
What is a simple moving average
A simple moving average is a trend following indicator that smooths out price fluctuations in order to measure the overall direction of price.
The first step is to calculate the mean (or average) of a set of data. This is done by adding all the values in the set and dividing by the number of values in the set.
Example:
Imagine that the data set is a series of prices for a stock or an exchange-traded fund (ETF). In order to calculate the simple moving average of the last five days, you would add the prices of the last five days and divide the sum by five.
The important thing to know is that only the last five days were used in the calculation. The price from six days ago is ignored.
In order to calculate the next day’s simple moving average, you would drop the price from six days ago and add the price from the most recent period.
Resources
Bitcoin Hash Rate Hits New All-Time High of 223.15m TH/s
A new all-time high has been reached at 223.15m TH/s. This is a strong indicator that the demand is still growing.
The Bitcoin (BTC) network’s hash rate rose by almost 14% after it bottomed in April and recorded a new all-time high of 223.14 million TH/s. Bitcoin hash rate recorded the previous all-time high reading in mid-February, but due to negative factors such as higher energy costs, we have seen a pause in mining speed. Two months later, BTC’s hash rate bushed off all the stumbling blocks, and it has resumed its long-term upward trajectory. Blockchain.com also revealed that Bitcoin’s mining difficulty has also reached a record high of 29.79 trillion.
Bitcoin Hash Rate and Bitcoin Price
When it comes to Bitcoin, the hash rate is the measurement unit of the processing power of the Bitcoin network.
The higher the hash rate is, the more miners can generate Proof-of-Work (PoW), which leads to more blocks being added to the blockchain and hence, a higher chance of completing transactions. A higher hash rate also means that you as a miner have a better chance of finding a block than any other node, which results in block rewards.
The relationship between Bitcoin’s price and the hash rate usually goes like this: Mining activity increases when BTC prices are high, mining activity increases, and vice versa. This happens because when BTC prices are high, miners can earn more revenue per day, giving them an incentive to increase their operations. On the other hand, when BTC prices drop too low, some miners may be forced to shut down their operations due to a lack of profitability. So the two metrics have indeed moved in tandem in the past few years.
Bitcoin’s hash rate grew by more than 5,000% in 2019, when the cryptocurrency price almost tripled. The hash rate then jumped from around 40 million TH/s at the end of last year to above 160 million TH/s as of Feb. 21. During the same period, Bitcoin surged from $7,200 to as high as $68,789.63.
There’s a strong correlation between the Hash rate and Price because they follow Moore’s law. This law states that “the speed or capacity of computer chips will double every two years while costs will halve over time.” In short, the computational power available for mining increases exponentially while the exact time cost of acquiring this hashing power decreases exponentially.
With the hash rate reaching a new all-time high, the demand for Bitcoin mining is still growing, even after a year of insane price gains for the cryptocurrency. The last time the hash rate reached a new all-time high, Bitcoin was worth around $40,500. At the time of writing, one Bitcoin is worth more or less the same as BTC is trading back and forth near $40,000.
Since the hash rate is a leading indicator, we can expect Bitcoin’s price to try to factor in the new developments. While they don’t have a positive correlation all the time, the hash rate is a crucial parameter that measures the Bitcoin network’s strength.
Bitcoin Hash rate future
The future of Bitcoin’s hash rate is exciting because it points to a more secure and decentralized network. As more people join the mining community, the total hash rate will increase. This means that the network’s overall security will improve since it would be harder for any one person or group to control 51% of the hashing power. Additionally, a higher hash rate could lead to faster transaction times and lower fees as miners compete for a smaller pool of rewards.
Related articles
Subscribe to our medium for a weekly blog and update.
Follow us on Twitter | Facebook | Reddit | Instagram
Start trading at Cryptohopper!
Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing
Also, Read
- 3Commas Review | Pionex Review | Coinrule review
- Ledger vs Ngrave | Ledger nano s vs x | Binance Review
- Bybit Exchange Review | Bityard Review | Jet-Bot Review
- 3Commas vs Cryptohopper | Earn crypto interest
- The Best Bitcoin Hardware wallet | BitBox02 Review
- BlockFi vs Celsius | Hodlnaut Review | KuCoin Review
