The Most Profitable Buy Signal In Bitcoin Just Triggered

Keshav Verma

Last Updated: June 11, 2024 8:37 am

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The latest trend in the Bitcoin “hash ribbon” indicator has just formed a pattern that has historically been a buy signal for the crypto.

Bitcoin Hash Ribbon Buy Signal Goes Off As Miner Capitulation Comes To An End

As explained by an analyst on Twitter, the BTC miner capitulation phase seems to have ended today after going on for 71 days.

Before trying to understand what the “hash ribbon” indicator does, it’s best to first take a look at the “hashrate” metric.

The hashrate is a measure of the total amount of computing power connected to the Bitcoin blockchain by the miners. During bear markets, some miners’ income drops so low that running their operations becomes unprofitable for them. In such times, their only choice is to plug off their machines, which registers as a downtrend in the hashrate.

In past bear markets, the major bottoms have generally taken place during these periods of miner capitulations, where a large number of miners rapidly go offline due to low revenues.

An indicator to pinpoint these miner capitulation periods is the hash ribbons. Devised by the aforementioned analyst, Charles Edwards, this metric uses two different moving averages of the hashrate, the 30-day MA and the 60-day MA, to note for changes in miner behavior.

Here is a chart that shows the trend in the Bitcoin hash ribbons over the last few years:

The 30-day SMA hashrate seems to have just passed above the 60-day SMA version | Source: Charles Edwards on Twitter

As you can see in the above graph, the Bitcoin miner capitulation periods are marked using the hash ribbons indicator.

Whenever the 30-day MA version of the hashrate declines under the 60-day MA line, the miners are assumed to be beginning a capitulation phase.

A break above the 60-day MA by the 30-day MA, on the other hand, implies an end to capitulation by these chain validators.

When this kind of capitulation ending crossover of the hash ribbons occurs, a buy signal goes off for the crypto.

But even among these buy signals, there are some that are especially profitable. Such signals form following miner capitulations that happen more than 2 years after any halving event.

Today, the hash ribbons have once again painted the historic pattern of the buy signal as the latest run of miner capitulation has come to an end after 71 days. It has also now been more than 2 years since the last halving event, which, going by the past trend, would suggest this is one of those rare “most profitable” buy signals for Bitcoin.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.3k, down 13% in the past week.

Looks like the value of BTC has plunged down | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.