Bitcoin Hash Ribbons Give First Buy Signal Since $25,000

If we can believe Capriole Investments, the Bitcoin price will “rise enormously” in the short term. They are based on the Hash Ribbons, an on-chain indicator that provides a bullish signal for the first time since the Bitcoin price reached $25,000.

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The Hash Ribbons are back

Bitcoin miners suffered a “disappointment” with the halving in April. With the halving, the block reward for miners fell by 50%, which also caused their turnover to take a big hit.

As a result, the hashrate has cooled down considerably after the all-time high of March. Currently the hashrate is consolidating at a lower level. According to Charles Edwards of Capriole Investments, that’s not a bad thing.

According to him, miners are simply adapting to the new reality.

Now the Hash Ribbons are in a so-called “capitulation phase” which, according to Charles Edwards, constitutes a buy signal for Bitcoin. “The Hash Ribbons are back. This is probably the best buy signal for Bitcoin out there,” said Charles Edwards.

What do the Hash Ribbons do?

The Hash Ribbons measure the 60-day moving average of the Hash Rate against its 30-day equivalent. Capitulation occurs when the 30-day average falls below the 60-day average.

The last time we saw this, the Bitcoin price was still at $25,000. In that respect, we could be preparing for the next part of the bull market. That, at least, is Charles Edwards’ belief.

“Some people love the Hash Ribbons as a signal, while others hate them. There is always discussion when this signal comes,” says Edwards. So there is no certainty in that regard.

What do you think? Will Bitcoin soon start the second part of the bull run or should we be patient for a while? For now, Bitcoin continues to struggle to hold the $69,000 – $70,000 level.

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