Analyst Detects Bitcoin Buy Signal

The Hash Ribbons indicator has signaled a buy for the leading cryptocurrency. Each occurrence of this signal is followed by an “explosive price rally,” noted the analyst known as Mikybull.

#Bitcoin just witnessed a rare hash ribbon ‘Buy’ signal

Whenever this happens, an explosive rally follows. pic.twitter.com/ZsR07PTD7T

— Mikybull ?Crypto (@MikybullCrypto) July 24, 2024

The Bitcoin “difficulty ribbon” tracks two moving averages of the hash rate. When the 30-day metric falls below the 60-day one, it indicates challenges for miners.

However, when the reverse occurs, a buy signal appears, historically followed by a price increase.

On July 23, the indicator exited “capitulation” for the first time in nearly two months. Mikybull added in a separate post that traders should “prepare for a massive rally.”

According to Glassnode, on July 23, the smoothed 7-day moving average hash rate was 645 EH/s.

At the time of writing, the leading cryptocurrency is trading around $66,300, gaining 1.8% over the week.

Technical analyst Ali noted signs of potential growth for digital gold as it approaches $67,000.

#Bitcoin is showing signs of a breakout, possibly heading towards $67,000!

The RSI has already broken its descending trendline, and now $BTC needs to surpass $66,450 to confirm the bullish breakout. pic.twitter.com/nHhNLFmVHp

— Ali (@ali_charts) July 24, 2024

“The RSI has already broken its descending trendline, and now Bitcoin must exceed $66,450 to confirm the bullish breakout,” he explained.

ETH Traders Should “Expect the Unexpected”

Although the debut of spot Ethereum ETFs in the US did not significantly alter the asset’s price, Ethereum could still reach new highs in 2024.

“People should expect the unexpected. If the Ethereum community is looking for another reason to be in the spotlight, it has all the prerequisites for an unprecedented rally. Everyone is waiting for good news,” said Swyftx lead analyst Pav Hundal in a conversation with Cointelegraph.

According to him, a significant volume of ETH is currently locked in staking, meaning it cannot be sold, which helps reduce supply. He also noted positive sentiment in the options market.

“It is still more of a bullish than bearish trend. The put/call ratio is 0.27, showing that speculators are betting on growth. It’s a very, very bullish trend,” Hundal added.

The researcher did not specify an exact target for the second-largest cryptocurrency by market cap, but considers reaching the previous all-time high of $4890 as the “nearest target.”

However, he warned that the asset’s price could be “volatile” over the next 30 days. At the time of writing, Ethereum is trading at $3450, down 1.8% in 24 hours.

Hundal emphasized that traders might “ignore previous ETH prices” before The Merge, as this event provided the ecosystem with a more reliable supply and demand mechanism.

“Since the deflationary mechanism was introduced, the product has included more deflationary elements, such as the self-regulating Proof-of-Stake consensus mechanism. Now, when the market is loaded, less Ethereum is created,” he explained.

Analysts at QCP Capital considered the market’s reaction to the launch of Ethereum-based exchange-traded funds as “muted.”