By averaging mining difficulty, traders can determine when miner selling and buying pressure aligns with turning points in BTC's price. Bearish signal
By averaging mining difficulty, traders can determine when miner selling and buying pressure aligns with turning points in BTC’s price. Bearish signals occur when short-term moving averages compress and cross below a long-term moving average, and the opposite is true for bullish signals. Still, at times signals can lag price action by a few months.
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