A bitcoin graph is a graphical representation of the transaction flow of bitcoins over time. The graph shows a smooth progression from when the buyer first creates an account and deposits money to when they finally send their first transaction or sell any existing balances. The progression can also be depicted as a currency-like price-to-price series, with maximum prices being referred to as the resistance level. hotgraph The resistance level is the line on the graph that represents the highest price for a particular transaction at any given time. The size of the channel can vary, but it is typically a narrow band that spares both short and long term highs and lows.
There are several types of graphs that one can create using the bitcoin network. The most common ones are the stacked and bar charts. The stacked chart simply consists of a number of horizontal bars, which form a pattern over time. The size of the pattern can vary, but it is typically a near constant value. This form of price formation can be useful for identifying price patterns that repeat themselves, or to identify breakouts.
Another type of graph that can be created in conjunction with the bitcoin network is called a Local Topological Database (LBD). A Local Topological Database is a condensed version of the stacked graph above. Here, the number of chains is reduced to a single chainlet. However, instead of representing the number of chains as a number, each chain in the LBD is drawn as a point. Each point can then be connected to another point in the LBD by right-angling them. This allows a user to easily identify sharp price changes within the network.
A final graph model, known as a transactional log graph model, is often used to make applications more intractable. With this type of application, the client will be able to submit a transaction to the network, and then the bitcoin client will be able to submit the resulting data to any number of storage and processing facilities on the network. In order to understand this model, it is helpful to first define a term called a log. A log is simply a collection of points on a finite graph. The data that is stored in a log can be considered to be a “point” in this finite graph, unless of course it is a zero or negative number.
One can easily visualize the log of the transaction data as a function of time. As blocks of transactions are inserted into the network, the graph of each block of transactions will change, as will be known by the customer. By viewing this data in this way, it becomes possible to create an online application that lets a user to determine how certain parameters of an online transaction, such as confirmation time, would affect the final value of their investment. For instance, if a user wants to determine how the time window that is required to confirm a transfer of funds will change over time, the transaction graph could be rendered as a function of the number of confirmed transaction that will occur in a set time frame.
The Bitcoin graph chalet is also useful for other types of forecasting price activity. For instance, an investor who is analyzing market depth may utilize this type of chart to see which markets are providing strong support for a particular currencies pair over a given period of time. This allows them to identify specific “trend” areas where an investment may be headed. This type of analysis becomes especially useful as news or announcements about specific currencies become public. This ability to forecast allows investors to stay on top of the conversations that are shaping the financial landscape, making it easier for them to make better buying and selling decisions.
