The “Hash Ribbon” indicator, which is used to determine the time to buy based on the correlation between bitcoin hash rate and price, has given a buy signal for the second time this year. The “Hash Ribbon” indicator, which gave a similar signal in January and predicted a 27% increase, turned blue again.
While the blue color is known to be a buy signal, the indicator finally switched to this color on January 14th. The indicator, which again gave a “Buy” signal on August 12, thus returned to this signal for the second time this year.
When Hash Ribbons last gave a buy signal, bitcoin was trading at around $20,000. After this signal, the price reached around $25,000.
The “hash ribbon” indicates the intersection of the 30-day moving average of the hash rate and its 60-day moving average. The 30-day EMA crossing the 60-day EMA now signals the end of miners capitulation.
As it is known, this capitulation is also known as “miner capitulation”, with miners selling their BTC for high amounts and even shutting down their machines after some time. .
However, after a while the mining difficulty drops as the rigs shut down, and the remaining big and powerful miners sell short. Selling short leads to higher prices, which reduces the selling pressure significantly. This allows investors who buy during miner capitulation periods to make significant profits.
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