After a prolonged phase of consolidation, notable movements appear ready to manifest in the price of BTC. The Hash Ribbon indicator is currently showing a buy signal, marking the end of the capitulation of bitcoin (BTC) miners. Could it serve as a catalyst for the next bull market?
Bitcoin: the miners are back!
Since its annual peak at $31,877, the price of bitcoin has fallen 7%. This correction period led to the capitulation of miners due to an unfavorable situation in the market. However, the Hash Ribbons indicates that this phase of capitulation of Bitcoin (BTC) miners is coming to an end. This potentially suggests the imminent approach of a rise in the value of this flagship crypto.
Indeed, when examining the daily chart of BTC on TradingView, a blue dot stands out on the indicator. This patch is a significant buy signal for investors waiting for the next bull market. In addition, it is accompanied by the term “buy”.
This same signal appeared on January 14 on the Bitcoin (BTC) chart. After this signal, BTC had recorded a rise of 58%, reaching its yearly high at $31,877. If this situation repeats itself, an increase to around $47,000 could be envisaged, with the resumption of mining activities.
Hash Ribbons, a relevant indicator?
Created by Charles Edwards in 2019, Hash Ribbons is an indicator designed to detect periods of capitulation by Bitcoin (BTC) miners. It is based on variations in the daily hash rate.
When miners temporarily suspend operations due to unfavorable market conditions, Hash Ribbons displays a green dot. Conversely, a blue dot signals the resumption of mining activities.
Wouldn’t this be the return of the holy blue dot on the#Bitcoinhashribbon? pic.twitter.com/nb5OXwtluD
— CryptoMatrix (@CryptoMatrix2) August 13, 2023
However, this indicator does not identify the lowest point of the price, which implies that Bitcoin (BTC) could possibly hit a new low before starting to rise again.
For long-term investors, this blue dot could finally mark the long-awaited buying signal in view of the next bitcoin (BTC) bull run.
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