Technical Analysis of the Network Difficulty: Are We Stabilizing?
Updated: Nov 12
Something new, I have never written such an article yet, but lately I have been closely following the Network Hashrate graph. And here's what I noticed:
Primitive technical analysis can be applied not only to exchange rates. In the growing Difficulty of the BTC Network, I have been using it long enough to find the correct metrics for Pessimistic, Realistic, and Optimistic scenarios.
Starting from July 10, the network hash rate began to recover, which set a trend with lower and upper peaks, and they were updated more often than once every 20 days.
At the moment, a upper peak of 189.7 EH/s was recorded on October 25th and has not been updated yet (18 days). And also 2 falling upper peaks were already recorded on November 6 (185 EH/s) and November 11 (182 EH/s).
As for the lower peaks, they also reversed the trend: November 1 (142.5 EH/s), November 9 (137 EH/s).
To confirm the reversal of an uptrend, of course, moderation of the hash rate is required over the next 10 days. But at the moment, I see the beginnings of the network hash rate starting to stabilize for the first time since July 2021.
To cancel my theory of stabilization, the hash rate needs to set a new upper peak at around 200 EH/s.
Let me remind you that the All time high of Hashrate was registered on May 9, 2021 at around 191.42 EH/s.
What do you think? Is the hash rate recovery process over or are we expecting an increase to 200 EH/s in the next couple of weeks?