{"id":430468,"date":"2020-07-13T03:00:31","date_gmt":"2020-07-13T03:00:31","guid":{"rendered":"https:\/\/uniquehot.com\/?p=430468"},"modified":"2024-06-11T14:05:06","modified_gmt":"2024-06-11T14:05:06","slug":"bitcoin-confirmed-signal-preceded-historical-5000-rallies","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-confirmed-signal-preceded-historical-5000-rallies\/","title":{"rendered":"Bitcoin Just Confirmed a Signal That Preceded Historical 5,000% Rallies"},"content":{"rendered":"

There’s been talk about Bitcoin’s<\/a> “Hash Ribbons” over recent days. The Hash Ribbons is an indicator that derives signals from crosses in the short-term and long-term moving averages of the hash rate of the Bitcoin network.<\/p>\n

Crypto investors have begun to discuss it because they said it was on the verge of printing a bullish signal of macro importance.<\/p>\n

According to the creator of the indicator, the signal in question was just confirmed three hours ago (as of this article’s publishing).<\/p>\n

Bitcoin Just Confirmed a Bullish Signal of Macro Importance<\/strong><\/h2>\n

As reported by NewsBTC on Sunday<\/a>, there was talk of the Hash Ribbons forming a “buy” signal as prices inched higher.<\/p>\n

After the daily candle for Sunday closed, digital asset manager and the creator of the Hash Ribbons, Charles Edwards, confirmed<\/a> the signal:<\/p>\n

“#Bitcoin Hash Ribbons “Buy” signal just confirmed. The post-Halving signal is particularly special.\u00a0 It will probably be a very long time until the next occurs. …and so the great bull run begins.”<\/p><\/blockquote>\n

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Chart of the confirmation of the Bitcoin Hash Ribbons \"buy\" signal from TradingView.com<\/a><\/pre>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
The signal is important as it has historically preceded parabolic rallies in the price of BTC.<\/p>\n
The chart below is from<\/a> Edwards and is current as of December 2019. It shows that each instance of the Hash Ribbons printing a “buy” has led to parabolic gains, with the rallies averaging out to 5,520%.<\/p>\n
\"Image\"<\/p>\n
Graph of Bitcoin's gains in the wake of a Hash Ribbons \"buy\" from Charles Edwards<\/pre>\n
Fending Off the Death Spiral<\/strong><\/h2>\n
The Hash Ribbons’ latest “buy” signal is only possible because Bitcoin miners quickly bounced back after capitulating.<\/p>\n
On July 12th, this writer published an extensive Twitter thread<\/a> on Twitter analyzing the state of the cryptocurrency mining space.<\/p>\n
Foremost, the seven-day moving average of Bitcoin’s network hash rate just hit a new all-time high above 124.5 exhashes per second. This is around double that seen just a year ago. The strength of BTC miners comes in spite of the block reward halving in May, which effectively reduced the revenues of miners by 50%.<\/p>\n
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After falling 27% following the halving, Bitcoin's hash rate has just set a *new all-time high* at over 124 exahashes per second.<\/p>\n
Once again, no "death spiral" was had. And that's long-term bullish for BTC. <\/p>\n
Here's more on why. pic.twitter.com\/aftOputP74<\/a><\/p>\n
— Nick Chong (@n1ckchong) July 12, 2020<\/a><\/p><\/blockquote>\n