BTC Price to Hashrate Delta Ratio with MA — Indicator by HenriqueCentieiro

breadthstudies trendanalysis bitcoin hashrate

Historically, Hashrate and Bitcoin prices have a strong correlation. When hashrate increases more than Bitcoin price, it indicates a rise in Bitcoin price soon.

This indicator uses the formula:
Price/hashrate delta ratio = period price delta / period hashrate delta

Whenever the ratio between the price and hashrate of Bitcoin is positive, it indicates that the price is increasing at a faster rate than the hashrate. This, in turn, means that Bitcoin is becoming more expensive compared to any variations occurring in the hashrate. Using the Price/Hashrate Delta ratio, we can determine whether Bitcoin is overvalued or undervalued in relation to the hashrate. This can be a helpful indicator for assessing the current market conditions.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

Related Ideas

about BTCUSD