As a seasoned crypto investor with a knack for deciphering market trends and a keen eye for technical analysis, I find the recent developments surrounding Bitcoin quite intriguing. The Hash Ribbons indicator, as reported by CryptoQuant, signaling the end of miner capitulation is indeed an interesting turn of events.
According to analysts from the on-chain data and analytics platform CryptoQuant, Bitcoin‘s recent behavior, as observed through the widely used Hash Ribbons indicator, suggests that miner capitulation may be over. This means that miners are no longer selling their Bitcoins at a rapid pace, which could potentially be a positive sign for the cryptocurrency market.
The experts’ analysis predicts a possible renewed rise in Bitcoin (BTC), as it recently approached the $59,000 mark again. Yet, the crypto market has faced difficulties over the past week, causing the Bitcoin price to dip below $60,000 after encountering resistance near the $62,400 region.
Hash rate hits all-time high
Despite bears still posing a risk, CryptoQuant’s recent post hints at a probable surge in Bitcoin’s price in the upcoming months, as suggested by their analysis. They point out that the Hash Ribbons, a tool miners use to identify “tense times in the mining market,” are indicating a potential price floor could be reached soon.
As a researcher, I’ve been observing the cryptocurrency landscape closely, and one tool that has caught my attention is the Hash Ribbons. This unique indicator helps us identify turbulent times in the mining sector by comparing the 30-day and 60-day moving averages of the Hash Rate. Recently, Hash Ribbons have indicated the end of miner capitulation, which means a significant reduction in the number of miners selling their assets due to stress or financial strain. This trend is not only interesting but also logical, as it suggests that the market might be stabilizing and potentially heading towards recovery.
— CryptoQuant.com (@cryptoquant_com) August 19, 2024
Hash Ribbons rely on the 30-day and 60-day moving averages of Bitcoin’s mining hashrate to indicate potential trends. A significant increase in the network hashrate, reaching a record high of 638 exahashes per second, usually signals an end to miner sell-off or capitulation.
“As miners upgrade to more energy-efficient machinery, they’re restarting their operations and becoming less inclined to part with their equipment.”
CryptoQuant
Hash Ribbons ‘often’ precedes price rally
In April 2024, Bitcoin underwent its fourth reduction in block rewards, going from 6.25 Bitcoins to 3.125 Bitcoins per block. The price of Bitcoin climbed significantly before the halving, reaching an all-time high of over $73,000. However, miner exhaustion and unfavorable market factors led to a downturn in Bitcoin’s value following the halving event.
According to CryptoQuant, the Hash Ribbons are signaling positively for the first time post-halving, which is considered a promising development.
“Though this indicator doesn’t specifically predict the lowest possible price, it frequently foreshadows rising prices by indicating that miners are reducing their selling pressure.”
CryptoQuant
Bitcoin trades around $59,086 at the time of writing.
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2024-08-19 23:30