Today I programed the Bitcoin Difficulty Ribbon Indicator.
First of all, special thanks to:
Vinny Lingham Willy woo
I just added a green background to clarify the buy signal.
Introducing the Difficulty Ribbon, signaling the best times to buy Bitcoin
Introducing the Bitcoin Difficulty Ribbon. When the ribbon compresses, or flips negative, these are the best times to buy Bitcoin . The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty.
How it the Difficulty Ribbon works This visualisation of network mining difficulty speaks to the impact of mining on Bitcoin's price. As new coins are mined into existence, miners sell some of their mined coins to pay for production costs. This produces bearish price pressure.
The weakest miners sell more of their coins to remain operational. When it becomes unsustainable, they capitulate, hashing power and network difficulty reduces (ribbon compression), leaving only the strong, who sell less leaving more room for more bullish price action.
Typically we see this at the end of bear cycles, after miners capitulate, the lack of miner selling pressure allows the price to stabilise and then climb; the classic accumulation bottom.