BTC HASHRATE DROP: Onchain

Why is the drop of hashrate important?
Drop of hashrate usually occurs because some miners in the mining network stop for working. There are several possible reasons for this. Such as new anti-mining regulations in some countries or a sharp drop in the price of bitcoin, which makes mining no longer affordable for some miners. So they turn off their devices
This reduces the supply of bitcoin in the market and according to the law of supply and demand can eventually lead to an increase in the price of bitcoin.
This oscillator is designed to detect hashrate drop. for this, we use the data of glassnode . Maroon color indicates decrease in hashrate and Red color indicates excessive hash rate drop. As can be seen on the chart, usually after this drop, we see an increase in the price of bitcoin