Bitcoin Hash Ribbon Buy Signal Goes Off As Miner Capitulation Comes To An End
As explained by an analyst on , the BTC miner capitulation phase seems to have ended today after going on for 71 days.Before trying to understand what the “hash ribbon” indicator does, it’s best to first take a look at the “hashrate” metric.
An indicator to pinpoint these miner capitulation periods is the hash ribbons. Devised by the aforementioned analyst, Charles Edwards, this metric uses two different moving averages of the hashrate, the 30-day MA and the 60-day MA, to note for changes in miner behavior.
The 30-day SMA hashrate seems to have just passed above the 60-day SMA version | Source:As you can see in the above graph, the Bitcoin miner capitulation periods are marked using the hash ribbons indicator.
But even among these buy signals, there are some that are especially profitable. Such signals form following miner capitulations that happen more than 2 years after any halving event.
Today, the hash ribbons have once again painted the historic pattern of the buy signal as the latest run of miner capitulation has come to an end after 71 days. It has also now been more than 2 years since the last halving event, which, going by the past trend, would suggest this is one of those rare “most profitable” buy signals for Bitcoin.BTC Price
At the time of writing, Bitcoin’s price floats around $21.3k, down 13% in the past week.Looks like the value of BTC has plunged down | Source:
Featured image from Unsplash.com, charts from TradingView.com