• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Belgium to introduce new crypto ad regulation

2023-03-21

Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

2023-03-20

Taiwan orders financial watchdog to take over crypto regulations

2023-03-20
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01

    Yuga Labs Launches A New NFT Collection on Bitcoin Network

    2023-02-28
  • Metaverse

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20

    Nissan Doubles Down on Web3 Innovation

    2023-03-13

    As Fashion Moves into the Metaverse, What Other Industries Could Be Next

    2023-03-13

    South Korea Launches New ‘Metaverse Fund’

    2023-03-13
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Belgium to introduce new crypto ad regulation

    2023-03-21

    Taiwan orders financial watchdog to take over crypto regulations

    2023-03-20

    Florida Governor Moves to Ban CBDCs, Calls for Coalition of States to Follow Suit

    2023-03-20

    Florida Governor Ron DeSantis seeks to ban US CBDC in state

    2023-03-20

    Cardano Creator Charles Hoskinson Slams Politicians for Blaming US Banking Crisis on Crypto

    2023-03-20
  • Learn

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17

    How to Short Sell Bitcoin

    2023-03-17

    Why Decentralized Exchanges Are On Rise? Can INNODEX Surpass Binance and Uniswap?

    2023-03-15

    What is it & List of Top defi 2.0 Projects

    2023-03-13

    Centralized (CEX) vs Decentralized (DEX) Cryptocurrency Exchanges

    2023-03-06
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Bitcoin Hash Ribbons Trigger Buy Signal
Bitcoin

Bitcoin Hash Ribbons Trigger Buy Signal

2023-01-16No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

The collapse of FTX triggered a historic event for the Bitcoin market. In late November, the hash ribbons indicator signaled the beginning of a second wave of Bitcoin miner capitulation within one cycle. As NewsBTC reported, the hash rate dropped dramatically while some of the largest miners reported bankruptcy and dumped their BTC holdings on the market.

However, this poor state of the Bitcoin mining industry and the associated pressure on the Bitcoin price may have come to an end. As the net position change of miners already indicated since the beginning of January, the selling pressure has decreased significantly.

For the first time in over four months, miners had been hodling BTC instead of dumping the majority of their coins. The termination of the strong selling pressure from Bitcoin miners is now also confirmed by the hash ribbon indicator.

As the chart below shows, the hash bands are displaying a bullish cross. “Miners have stopped selling and are now plugging in machines at a sufficient rate to declare this period of miner capitulation over,” stated Will Clemente from Reflexivity Research.

Bitcoin hash ribbons
Bitcoin hash ribbons, Source: Glassnode

What Does This Mean For Bitcoin?

The hash ribbon is a market indicator that assumes BTC tends to hit a bottom when miners capitulate. Currently, the hash ribbons indicate that the worst of the miner capitulation is over as the 30-day MA of the hash rate crossed over the 60d MA.

In other words: When the hash ribbons indicate a cross, it signifies a paradigm shift. This is historically an extremely good buying opportunity. As Charles Edwards once said, it may be the strongest buy signal of all.

Why? Because the hash rate is a leading indicator for identifying capitulation to mining difficulty. Since the mining difficulty, unlike the hash rate, is not adjusted daily, but only every 2,016 blocks, the difficulty lags behind the hash rate by as much as two weeks.

Therefore, the difficulty is a somewhat lagging indicator of miner capitulation. But difficulty also shows the growing euphoria among miners. Bitcoin initiated a mining difficulty adjustment yesterday at block height 772,128. Mining difficulty climbed 10.26% to 37.59T, a record high.

This also confirms the thesis that miners are increasingly plugging their miners back into the network. The hashrate of the entire network is now 269.02 EH/s, also approaching its highs again. Thus, miners are clearly signaling their bullish sentiment.

The creator of the hash ribbon indicator, Charles Edwards, tweeted:

Hash Ribbon buy confirmed. The signal date was the second lowest price in the last 48 days. Our December newsletter: ‘a price low typically forms during the capitulation and before we see hash rate recover. Sometimes the first candle of the miner capitulation is the price low.’

At press time, Bitcoin was trading at $21,118. On the daily chart, the RSI was at 89, indicating an overbought territory.

Bitcoin price BTC USD
Bitcoin in overbought territory, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from Michael Fortsch / Unsplash, Chart from TradingView.com



Source link

Bitcoin Buy Hash Ribbons Signal trigger
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

How to Short Sell Bitcoin

2023-03-17

Bitcoin Bursts to $22,000 As Biden Administration Tries to Stop Contagion in U.S. Financial System

2023-03-12

Judges Will Likely Rule in Favor of Grayscale in Bitcoin Spot ETF Battle With SEC, Says Bloomberg Expert – Here’s Why

2023-03-12

SEC denies VanEck Bitcoin spot ETF for a third time; commissioners dissent

2023-03-11
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Celsius denies allegations on Alex Mashinsky trying to flee US

2022-06-28

Billionaire Mark Cuban Says Game-Changing Crypto Projects Will Break Through Market Slump – But One Class of Altcoin Projects Will Disappear

2022-06-17

Ripple case judge accused of being a ‘deep state’ operative

2023-03-06

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Belgium to introduce new crypto ad regulation

2023-03-21

Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

2023-03-20

Taiwan orders financial watchdog to take over crypto regulations

2023-03-20
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$28,182.000.61%
  • ethereumEthereum(ETH)$1,809.602.24%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.01-0.12%
  • binancecoinBNB(BNB)$337.750.00%
  • usd-coinUSD Coin(USDC)$1.00-0.20%
  • rippleXRP(XRP)$0.42415210.72%
  • cardanoCardano(ADA)$0.3542233.54%
  • matic-networkPolygon(MATIC)$1.161.46%
  • Lido Staked EtherLido Staked Ether(STETH)$1,814.092.49%