BITCOIN: The Hash Ribbon Indicator JUST CROSSED!
The Hash Ribbon indicator haven’t crossed since May 2021.
Hash Ribbon indicator looks at potential periods where Bitcoin Miner will struggle to support the Bitcoin network. When this happens, some miners may capitulate, sell to fund operation, or turn some mining rigs off. This happens typically during low profitability for miners.
The Hash Ribbon indicator looks at the 30 daily MA dropping below 60 daily MA. — indicated in the chart below. The 30 daily MA moving below 60 daily MA will most likely happen for a period of time.
This indicator doesn’t indicate that the price will move up, move down, or trend sideways. The indicator doesn’t indicate the bottom, but instead, it looks at a period of time where Bitcoin’s price may look very attractive. Historically, price movement trends upward after this period indicated by the yellow in the above chart.
In addition to this, the Puell Multiple indicator is low! This indicator on the bottom panel of the above chart looks at Bitcoin miners and their revenue. A low number means that they are not as profitable. This supports the Hash Ribbon Indicator where I stated that during this period, Bitcoin Miners tend to capitulate, sell funds and/or turn off some mining rigs.
*The indicators do not mean that Bitcoin price have bottom but historically it shows a period of time where Bitcoin’s price looks attractive.
An example is the final capitulation event of the 2018 bear cycle. (left yellow bar) This event had their capitulation event during this period of time. But once this period passes, price historically has trend upward.
A closer look at the crossing below in the charts below.
This article is not financial advice and is myself sharing my analysis of what I see of the Bitcoin market and my interpretation of it. This article should not be used for making financial decisions and is for entertainment purpose only.