Bitcoin (BTC) “hash ribbon” and “difficulty ribbon” indicators give important clues about miner activity in the network. In the technical analysis part, the “Golden Cross” or “Death Cross” price indicators show the optimism or pessimism of the miners. What signals are they giving now? Let’s take a brief look…
- The Hash Ribbon uses the thirty and sixty-day moving averages (MA) of the Bitcoin hash rate.
- The Difficulty ribbon consists of eight different simple moving averages (SMAs) of the difficulty level of mining on the Bitcoin network.
- The Golden Cross is formed when the short term MA crosses the long term big MA upwards.
- A Death Cross occurs when the short-term MA breaks below a long-term MA trendline.
Jan and Yann: 120 days to recover from bitcoin mining
According to a post by Jan and Yann (Glassnode founders) Twitter account, Bitcoin’s mining difficulty is outpacing Chinese pressure.
The Bitcoin difficulty strip (DR) will soon signal a positive recovery as more miners come back online. The last comparable event followed the bear market capitulation in December 2018, which took 164 days to turn positive. The current mining recovery took 120 days.
These indicators show a similar performance to the performance recorded at the end of Q4 2018 due to the panic of miners. During the “coldest” days of the Great Crypto Winter, when the Bitcoin (BTC) price hit a 50-month low of $3,216, many miners shut down their rigs. However, it took less than half a year for Bitcoin (BTC) difficulty to recover. A “recovery” with ribbon indicators should be considered a situation where the most volatile moving average (like 9MA) crosses below the most stable one (200 MA).
The ongoing miner surrender can be attributed to the exit of Bitcoin (BTC) miners from China, according to experts. cryptocoin.com As we have mentioned, the USA, Kazakhstan and Pakistan were the most important destinations for this forced migration.
Experts predict these levels by the end of the year
In 2021, it took just 120 days for Bitcoin (BTC) difficulty to give its first “positive” signal after the massive drop. With BTC coming out of its most bearish month with a mediocre 7% loss, many analysts are confident it is on the verge of the next phase of the rally. Digital Galaxy CEO Mike Novogratz expects the Bitcoin price to skyrocket in late Q4 2021. At the same time, prominent economist Raoul Pal predicts a “3x-6x” crypto capitalization rally in the coming weeks.
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