For example, we can understand the difference between a computer, capable of solving a few mega hashes per second (MH/s) (millions of SHA-XNUMX hashes per second). As an FPGA or ASIC miner, it is capable of reaching from hundreds of MH/s to tens of terahashes per second (billions of hashes per second).
At this point, the hash rate concept is used to show the potential of a miner. However, there is another usage where the term hash rate is also important as we will see below.
The hash rate as an expression of the power of a blockchain network
As you know, the Bitcoin network is made up of hundreds of thousands of miners specializing in this task. Each specialized miner is thousands of times more powerful than a computer to resolve SHA-256 type hashes. But the best thing about all this is that the work of all these miners adds up. All so that your network set ends up offering superior power that allows you to resolve SHA-256 hashes faster.
With this, we have our second definition:
The hash rate refers to the overall ability or power of a cryptocurrency’s network to solve cryptographic puzzles resulting from the Proof of Work and the implemented cryptographic function.
In short, the working power of all miners on the Bitcoin network is summed up so that we can finally know the total power of the network. Currently, the Bitcoin network has a global hash rate of 110,000 PH/s.
With that in mind, we can now understand how Bitcoin Hash Ribbon works, so
The Hash Ribbons indicator works with three warning signals, which automatically lit up when miners started shutting down their machines. Are they:
Miner capitulation signal: at this point, the hash rate starts to decrease as miners give up mining. It is an indicator that the rate is falling precipitously.
End of miner capitulation signal: this is when the rate recovers and goes back up again.
Bitcoin Buy Signal: This warning signal is only triggered when the moving average of the Bitcoin price in the last 10 days is above the average of the last 20 days. In this case, the buying impulse becomes positive.
The $20.700 dropped and still didn’t have much of strong a reaction. So we can expect 19700$-19000 to be tested again in the 1D demand zone,
Then probably it should go 28-29K range there is an untouched Supply. A Stop-Loss at 18555$ is recommended. NFA