Founder of Capriole Investments Charles EdwardsHe thinks that the Bitcoin (BTC) hashrate fluctuations statistic that he follows may start to decrease by peaking during the period when miners are pessimistic.
What Does Bitcoin (BTC) Hash Ribbon Say?
Charles Edwards, an indicator that measures the sentiment of Bitcoin (BTC) miners Hash RibbonHe shared a tweet claiming to be giving bullish signals for the flagship cryptocurrency.
Hash Ribbon buy signal!
the #Bitcoin miner capitulation has officially ended today, making it the 3rd longest capitulation in history at 71 days.
This capitulation zone was longer than 2021, and just two days shorter than 2018’s where price touched $3.1K pic.twitter.com/B3mMhKQPls
— Charles Edwards (@caprioleio) August 20, 2022
According to Edwards, this period of capitulation by miners, which refers to the period when pessimistic miners shut down and/or sell their mining equipment, is over. The capitulation lasted only two days less than the 2018 crypto winter and was painful for investors.
Historically, Bitcoin (BTC) has slumped to lows during miners’ capitulations. Also, capitulations coinciding with the second half of BTC mining cycles resulted in the most reliable bullish signals.
The second phase of this cycle began on May 10, 2022. This is a detail that makes Charles Edwards’ forecast very optimistic.
What Is a Hash Ribbon and Why Is This Metric Important?
Hash Ribbon indicatorCreated by Charles Edwards in 2019. He described this concept in his Hash Ribbons & Bitcoin Bottoms article.
The indicator is based on the correlation between the 30 and 60-day moving averages (MA) of the Bitcoin (BTC) net hash rate, that is, the hash rate calculated by all miners of the Bitcoin (BTC) network.
When the 30 DMA falls below the 60 DMA, analysts point to the capitulation of the miners; When the capitulation ends, the opposite is the case. Safe bullish signals are recorded when the 30 DMA rises above the 60 DMA with price increases.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.