Hash Ribbon Indicator Issues Bullish Signal for Bitcoin
The Hash Ribbon indicator has issued a bullish signal for Bitcoin, suggesting a potential market turning point. This on-chain metric identifies periods of miner capitulation and recovery.
Key Points
- The Hash Ribbon uses 30-day and 60-day moving averages of Bitcoin's hash rate.
- A buy signal occurs when the 30-day MA crosses above the 60-day MA.
- Historically, major buy signals followed significant market downturns and coincided with cycle bottoms.
- Past successful signals include lows in 2011-2012, 2014-2015, late 2018-early 2019, and mid-2021.
- Bitcoin Archive noted that price gains followed all previous instances of this signal.
- Only 20 signals have flashed in Bitcoin's history; 85% of the time, the local low was not violated after the signal.
- Jamie Coutts emphasized monitoring multiple on-chain metrics despite the bullish signal from the Hash Ribbon.
- Some traditional technical signals and on-chain metrics have not reached past cycle levels, even with high Bitcoin prices.
- Tony Severino shifted to a bearish stance, citing concerns about current price action and metrics not supporting bullish narratives.
- He warned against expecting Bitcoin to replicate historical extremes in momentum indicators.
At press time, Bitcoin traded at $87,373.
