Bitcoin’s price fell on Sunday after rising more than 28 percent in the previous 16 days. It was rejected by the $68,500 key resistance. Charles Edwards is the founder of Capriole Investments and he believes that investors can continue to expect bullish movement. Edwards posted the chart and said via X that: “BREAKING: Hash Ribbon buy signal just fired.”
What is the Bitcoin Hash Ribbon?
It is important to note that the hash-ribbons historically have been an accurate indicator. They are 84% accurate in predicting Bitcoins’ major price bottoms. The interplay of the hashing algorithms is what determines the ribbons. Bitcoin hash rate—the total computational power used to mine and process transactions—and Bitcoin’s market price.
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Analysts have noted that miners may temporarily stop operations if the price of Bitcoin drops or if operational costs such as electricity increase. This period, known as ‘miner capitulationThe importance of ‘,’ because the resumption of mining activity has traditionally been viewed by many as a bullish sign for Bitcoin.
This indicator is calculated from moving averages for the Bitcoin hashrate, specifically the 60-day and 30-day averages. A ‘Buy’ signal occurs when the shorter-term moving average crosses above the longer-term average after a period of miner capitulation, indicating that the worst of the sell-off may be over and a recovery phase is likely imminent.
Crypto analyst Jelle is known as @CryptoJelleNL on X. commented, “Hash ribbons are showing that minor capitulation is over! This signal prints after every halving event, and after major corrections — and suggests the next leg of expansion is just around the corner. Time for 80k+?”
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More evidence of the bullish outlook is the @DaFinancialPage account. noted On X “Miner Capitulation. The Hash Ribbons indicator’s blue buy signal has appeared 19 times. Of those, 16 marked Bitcoin’s macro low, giving it an 84% win rate. The 3 times it didn’t, a major correction followed.”
Thus, the appearance of the hash ribbon ‘Buy’ signal can be interpreted as a strong indicator for the next bullish phase Bitcoin market cycles. The three times the indicator failed to accurately predict an increase in Bitcoin’s market cycle highlight that every indicator comes with inherent risk and uncertainty.
Jelle has stated that the target amount of $80,000 was a close match to what Jelle had predicted. Fibonacci’s 1.272 extension sits at around $79 337. Bitcoin’s daily chart shows that it must first secure the support of the 0.618 Fibonacci level, at $65,943, before a potential new record high can be reached. The 0.786 Fibonacci level at $69384 or the 1.0 Fibonacci level at $73,767 are potential intermediate targets.
BTC was trading at $66,403.
Featured image created with DALL·E, chart from TradingView.com
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Source: www.newsbtc.com
