The Hash Ribbons indicator yesterday signaled the end of the capitulation of BTC miners. Now it is important to wait for the confirmation signal to buy, BUY.
Let us remind you that Hash Ribbons is an indicator developed by crypto analyst Charles Edwards. Essentially, this is a pair of moving averages of the#Bitcoinnetwork hashrate and mining difficulty, which can indicate the time of capitulation of miners and their inability to do business in the black. And if miners are out of the market, then, in theory, the pressure from sellers is reduced.
The green signal (dot) and the blue dot with BUY on the indicator both signal potentially favorable moments to buy #BTC, but they represent different stages of the process associated with hashrate and miner capitulation.
Briefly:
- Green dot: An early indicator that the capitulation of miners has ended and the hashrate has begun to recover.
- Blue dot labeled BUY: A confirmed buy signal indicating a sustained improvement in the market and confirmation of favorable conditions for entering a position.
Historically, BUY signals have been false, but very rarely. And this was associated with “black swans” or manipulations. For example, the “corona” dump in the spring of 2020, the#FTXscam in the fall of 2022, manipulation on two fake news (on SpaceX and Evergrande) in August 2023.
Statistically, more often than not, such signals worked perfectly, especially at a distance.
A week ago we wrote:
“The last time the capitulation start signal (started on May 15 - approx.) from Hash Ribbons was at the end of July 2023, and the BUY signal was in mid-April 2023. With the BTC rate around $30,000. From the “capitulation” mark to the “buy” mark can be from 1 to several (2 or even 3) months. Therefore, it is quite possible that we will see a buy signal from the indicator by mid-summer.”
It took about a month from the miners’ capitulation signal to the BUY signal last summer. But in general the process takes longer. BUT there is also an example from December 2019, when there were only 6 days between signals. True, the Santa Claus rally probably helped there.
$BTC
