The Hash Ribbons indicator has signaled the end of bitcoin miners’ capitulation, suggesting a reduction in their selling pressure on the market, according to CryptoQuant.
Hash Ribbons signals the end of miner capitulation ⛏️
Hash Ribbons are a popular indicator that highlights periods of stress in the mining market. It uses the 30 and 60-day moving averages of the Hash Rate and has just signaled the end of miner capitulation.
This is logical… pic.twitter.com/pokqp9ccev
— CryptoQuant.com (@cryptoquant_com) August 19, 2024
The metric uses the 30 DMA and 60 DMA of the hash rate to identify periods of financial stress for the miners of the leading cryptocurrency.
The crossover of these two values for the first time since the April halving was described by experts as a “healthy signal.”
“While the indicator is not designed to pinpoint the lowest price level, it often precedes a rise in quotes,” CryptoQuant specialists emphasized.
They noted that bitcoin’s hash rate reached a new all-time high of 638 EH/s. Analysts believe this confirms miners’ transition to more efficient equipment, which they are connecting to the network.
According to Glassnode, on July 27, the computational power indicator (7 DMA) recorded an ATH at 669.9 EH/s.
In early August, the hash rate corrected to levels around 611 EH/s and has not yet returned to its previous record highs.
Amid the decline in bitcoin’s price below $50,000, the hashprice fell to a record low of $36 per PH/s per day. BlocksBridge Consulting reported critically low profitability for mining digital gold.
On August 11, miners’ daily revenue hit a new low for 2024 at approximately $25.5 million.
The 4.19% reduction in mining difficulty following the latest recalculation and bitcoin’s recovery to around $60,000 have eased the economic pressure on mining operations.
As of August 20, the hashprice stands at approximately $45 per PH/s, according to Hashrate Index. However, miners’ daily revenue has not shown corresponding growth, remaining between $26-28 million.
Back in June, experts, including Hash Ribbons creator and Capriole Investments founder Charles Edwards, began discussing miners’ capitulation. Not everyone agreed with this view.
In July, analysts noted a shift among bitcoin miners towards accumulation, anticipating long-term asset growth.