Thank you, @pelon53!
Show the current value of the Multiple Puell indicator, Bitcoin. Perform LTC technical analysis using Multiple Puell, show screenshots and indicate possible market entries and exits.
The Puell Multiple is the ratio of the daily emission of coins in US dollars to the 365-day moving average coin emission, which is an oscillator built on the basis of the profitability of miners.
Currently, its value is 1.10, which means that the current profit of miners is low compared to the average annual profit.
The indicator reacts to the value I set at 0.9, which is why the green buy zone is so vast. In this period, mining income was below the annual average, this situation encourages miners to turn off their power to reduce energy use, since they are causing damage. And large miners receive hash power from mining farms, which have reduced their activities and accumulate coins.
If you look at the past periods in the history of litecoin, you can see both very high values of the indicator, which is a signal to sell an asset, and low values, which are a signal to buy an asset.
In this period, we can observe how the miners were selling the asset. Due to the high level of mining income, miners fixed their positions here.
If you analyze the litecoin chart, you can see the following picture
The indicator value in the settings is now 0.5. As we can see, after that the value of the indicator, the price of the asset went up. Since the current indicator value is 0.9, you should consider buying an asset, since large miners accumulate coins at this stage, from which their value will only grow
If you pay attention to the past values of the indicator, you can see that after the indicator reached 0.5, the price of the coin increased several times.
Considering that now the indicator value is less than 1, then the purchase of an asset should be considered.
Explain in your own words what halving is, what is the meaning of halving, and what the following reward values will be for miners. When is the last halving? Bitcoin related
Bitcoin halving is a halving of the profit received from Bitcoin mining by 2 times. That is, after every 210,000 coins mined, its value halves. It occurs once every 4 years. The last time it was on May 12, 2020 and then the reward for mining one block fell from 12.5 to 6.25 bitcoins. Halving leads to a shortage in the market, from which the price of the coin rises significantly.
Bitcoin dynamics after last halving on May 12, 2020
To find out the year of the next halving, it is enough to understand that it is held every 4 years and the next one will be in 2024. (Interestingly, just in a leap year). Since 2020, the block reward has been 6.25 bitcoins, and in 2024 it will be 3.125 bitcoins. This will be 4 halving, there will be 32 of them in total. After that, the creation of bitcoins will become impossible, since the offer will become the maximum.
Analyze the Hash Rate indicator using Ethereum. Specify the current hash Rate. Display screenshots.
The main idea of the Hash Rate indicator is that there is a direct relationship between the unit of mining power that miners contribute to the network and the price. The Hash Rate indicator consists of two simple moving averages: fast and slow, calculated on the hash rate values. On the chart, I applied a slow moving average with a value of 60 (blue) and a fast moving average with a value of 30 (red). When the fast moving average crosses the slow one from top to bottom, it means the miner's surrender: this means that the miner could not stand the competition due to the fact that mining does not cover its costs and transfers its power to mining more profitable coins.
When the fast moving average crosses the slow moving average from the bottom up, it means that the miners are back to mining the coin.
As you can see on the chart, the dynamics of the ether hash rate is now 4.04 and is gradually decreasing.
If we add the Powell indicator and analyze the situation with Ether, then we can conclude that miners are reducing their hash rate in Ether, since its payback is gradually decreasing.
Calculate the current stock for the STOCK TO fLOW model. Explain what should happen in the next Stock to Flow halving.
Calculate Stock to flow for this date, considering that the miners' reward is halved. Display screenshots. Applies to Bitcoin.
The STOCK TO fLOW model predicts the change in value by comparing the current inventory of an asset with the rate of new production or annual production. A higher ratio means a larger deficit, which usually results in a higher price.
The real amount of bitcoin on the market is 18,884,625
Blocks are mined every 10 minutes, there are 144 blocks per day, and 52,260 per year. Multiply this value by 6.25 - the number of coins that can be mined from one block according to Bitcoin halving 2020 and get the value 328,500 coins
The number of coins that can be mined per year - 328,500
SF = 18 884 625/328 500 = 57.487
With the next Bitcoin halving in 2024, the price will rise and its supply will decline. The number of mined coins per block will decrease from 6.25 to 3.125. Therefore, the STOCK TO fLOW value at the next Bitcoin halving will double to 114.974.
Conclusions.
Using the Multiple Puell indicators and the hash rate indicator, you can successfully invest in cryptocurrencies, since these indicators display one of the main indicators of a cryptocurrency asset, namely its average profitability for miners and the amount of power concentrated in mining cryptocurrency. As you can see in the previous charts, the indicators gave good signals for the rise and fall of the value of Bitcoin and Litecoin, and there were significant changes in the value of these assets. Using indicators will make your own trading system more successful.