----What is hashrate?----
-In simple words, the number of attempts that the miner makes per second is the hash rate or hash power.
When its getting higher, we have the more secure system and the more difficult problem to solve. (Because system has to find one block app. in 10 mins)
When we have more difficult problem, cost of mining BTC getting higher. (Because miners has to work harder and spend more electricity to get BTC )
In other words, a lot of miners want limited BTC at the same time.
-----THERE ARE 2 REASONS TO MINE BTC-----
First one, you can sell all BTC that you mined before and make instant profit.
Second one, if you think that price will go higher and you have a mining system, you can mine to sell later.
Second option is more popular while we're approaching to halving. Why? Let's look at 2016 halving period and analysis it.
I want to discuss this chart in 7 topics.
1- First downtrend on hashrate graph. (Phase 1 on chart)
3-4 months of accumulation makes most of people bored and shaked out.
2-First uptrend after first downtrend on hashrate graph. Miners realise that they will get half of reward after halving. (Phase 2)
So they try to mine as much as they can while reward is still same.
3-After halving we can see hashrate drop which is very normal. Because mining is not gonna profitable for some miners after halving.
Because cost of BTC will DOUBLE for certain time. (Phase 3)
4-Uptrend after halving on hashrate graph. After shaking out weak miners, remain miners continue to mine. Overall selling pressure will cut by half.
Miners're mining and selling 1800 BTC in one day right now. After halving it will down to 900 BTC per day. (Phase 4)
5- After long accumulation we can see quick rally because nobody want to sell their BTC's for some time.
That's why we saw 22 days rally in 2016.
6- A couple weeks before halving, we can see price drop which is very normal. Because market maker will sell the news.
7-After that correction welcome to next BULL CYCLE.
If you find this analysis helpfull please like,share and follow for more. If i can get enough like i will do "when next altcoin party?"
Thanks for reading. See you.
Also you can check $6600 buy call from related ideas.