Today I bring you this analysis of the Hash Ribbons indicator that is giving us a buy signal.
I will analyze what has happened in this mining capitulation and why this purchase signal has been given.
Let's see
Hash Ribbons
This indicator indicates the end of mining capitulation and a good time to buy, according to this indicator, with the bullish crossing of the 30-day line to the 60-day line.
What does the price of Bitcoin have to do with the Hash Rate indicator and the Hash Ribbons indicator?
2 months ago we saw a mining capitulation (Hash Ribbons indicator) in the following weeks we saw that the miners sold more bitcoins than they produced and that if it had not been absorbed by the market, it would have pushed back the price of bitcoin
We also saw with the days that the price did not go back for this oversold. Well now we know that the Grayscale Investments group was massively buying Bitcoin before and after halving
Keys seen in the previous publication
- The massive purchases of Bitcoin by groups of investors - have pressured the price increase
- The latest mining capitulation is not causing significant drops in the price of Bitcoin
- The amount of Bitcoin sold by miners is practically the same as that produced (in the chart we see that in 5 weeks the difference is in favor and only for 122 bitcoin).
source of graphic: https://terminal.bytetree.com/bitcoin
As we have already seen, the Hash Ribbons indicator is based on average lines of 30 and 60 days of the Hash Rate indicator. Bitcoin has been maintained during these two months in lateral average but the Hash adjustments have been upward
Analyzing the chart, we see that the price has been lateralized, but the increase in the Hash rate causes the 30-day average to increase crossing and the buy signal is given with a hash rate exceeding previous levels
Repeatedly throughout the history of the bitcoin price, different mining capitulations have been made, with buy signals given by this indicator with subsequent bullish cycles.
Almost always there have been cycles after the bullish buy signal.
If we wanted to compare the current moment of the buy signal after a halving, we would have to compare it with 2016.
After halving 2016 there has also been this mining capitulation and it has been the last sign of purchase, (indicated by the hash ribbons) that has brought the bitcoin price from $ 500 to almost $ 20,000
What do you think this buy signal will lead to a new bullish cycle, or will the markets continue to correct due to the global crisis?
PS: Today I will make another post about the Hash Ribbons, don't miss it !!!
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The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.
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