Hash Ribbons Indicator Signals Bitcoin Buying Opportunity

The Hash Ribbons indicator is issuing an “optimal signal” for purchasing digital gold in the coming weeks, suggesting a renewal of the asset’s rally, according to Charles Edwards, founder of Capriole Investments.

Hash Ribbons is back. Perhaps the best long-term Bitcoin buy signal there is, Hash Ribbons is now tempting us with a new Miner Capitulation…

Read more in Issue 51: https://t.co/cC7SThs2fa

— Capriole Investments (@capriole_fund) June 4, 2024

The metric indicates a miner capitulation that began two weeks ago, the expert noted. This is a period when the 30-day moving average of the hash rate falls below the 60-day figure.

According to Edwards, miner capitulation occurs roughly once a year. It is usually associated with operational shutdowns, bankruptcies, acquisitions, or, as in this case, a halving. The halving of the block reward leads to unprofitable equipment being disconnected from the network, causing a drop in the hash rate.

“This is what we are witnessing now. Historically, such periods have overwhelmingly coincided with broader market weakness, volatility, and significant long-term price growth opportunities,” emphasized the Capriole founder.

The last miner capitulation was observed in 2023, when Bitcoin was trading around $20,000, Edwards added.

From a technical analysis perspective, the first cryptocurrency is in a consolidation phase after reaching a price peak, the expert indicated. If a new growth impulse occurs, the next medium-term target will be $100,000.

However, the situation could reverse if Bitcoin closes the month below $58,000.

Several on-chain metrics and macroeconomic factors support the continuation of the Bitcoin rally, Edwards believes. However, as we enter summer, traditionally a quiet period in financial markets, the wait for an upward impulse may be prolonged, he acknowledged.

As reported in late May, CryptoQuant analysts stated that Bitcoin’s bull rally is not yet over.