Charles Edwards, a well-known Bitcoin analyst and founder of Capriole Investments fund, has shed light on what may be a major bullish signal for BTC. The Hash Ribbon indicator, which Edward developed in 2019, has just flashed a buy signal on Bitcoin’s price chart.
The Hash Ribbon, developed by Capriole Investments in 2019, is a technical indicator that tracks the recovery of Bitcoin’s hash rate following periods of miner capitulation.
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The metric identifies crucial buy signals based on the correlation between the hash rate and price recovery. Historically, such signals have been associated with strong long-term investment opportunities.
BREAKING: Hash Ribbon buy signal just fired. pic.twitter.com/LbeJhieW22
— Charles Edwards (@caprioleio) July 24, 2024
The latest signal emerged as the 30-day moving average (DMA) of Bitcoin's hash rate fell below the 60 DMA, a condition indicating a potential recovery phase after miner capitulations. This pattern has previously led to substantial price increases, reflecting periods when Bitcoin’s price experienced big discounts, but later surged.
What about Bitcoin's price?
Following Edwards' announcement, Bitcoin’s price has already experienced a modest increase, rising approximately 1% from $65,780 to $66,400. However, as can be understood based on Edwards' opinion, this should be just the beginning for the main cryptocurrency.
Thus, previously, he forecast a substantial long-term price target for Bitcoin, projecting a potential rise to $300,000, which would represent an increase of nearly 500% from current levels.
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All in all, this recent signal from the Hash Ribbon adds to the positive outlook for BTC, suggesting that the current price movement could be the start of a more substantial uptrend.
