Bitcoin has signaled the end of miner capitulation, as indicated by the popular Hash Ribbons indicator, according to analysts at the on-chain data and analytics platform CryptoQuant.
The analysts’ commentary on the potential for Bitcoin (BTC) to see a fresh surge comes as the flagship cryptocurrency retested the $59k level. However, crypto has struggled over the past week, with BTC price retreating to levels below $60k after hitting resistance at the $62,400 area.
Hash rate hits all-time high
While bears remain a threat, CryptoQuant’s latest post about the possible price scenario for BTC suggests a likely injection of upward momentum in the coming months. The analytics platform notes that the Hash Ribbons, an indicator that traders use to pinpoint “periods of stress in the mining market,” has signaled a potential bottom.
Hash Ribbons signals the end of miner capitulation ⛏️Hash Ribbons are a popular indicator that highlights periods of stress in the mining market. It uses the 30 and 60-day moving averages of the Hash Rate and has just signaled the end of miner capitulation.This is logical… pic.twitter.com/pokqp9ccev
— CryptoQuant.com (@cryptoquant_com) August 19, 2024
Hash Ribbons utilize Bitcoin hash rate’s 30 and 60-day moving averages to highlight this likelihood. An end to miner capitulation coincides with the network hash rate surging to an all-time high of 638 exahashes per second.
“Miners are beginning to use more efficient equipment, turning their machines back on and becoming less likely to sell.”
CryptoQuant
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Hash Ribbons ‘often’ precedes price rally
Bitcoin had its fourth halving in April 2024, with the block reward reducing from 6.25 BTC to 3.125 BTC. Prices rose ahead of the halving to reach the all-time high above $73,000 before miner capitulation and other negative catalysts pushed BTC lower.
CryptoQuant has pointed to Hash Ribbons flashing – the first since the halving – as a “healthy signal.”
“Although the indicator isn’t meant to pinpoint the exact price bottom, it often precedes higher prices by signaling a reduction in selling pressure from miners.”
CryptoQuant
Bitcoin trades around $59,086 at the time of writing.
Read more: What will future Bitcoin halvings look like?
