Bitcoin’s ‘Massive Rally’ Hits Buy Signal for 1st Time in Year
Bitcoin (BTC) should see an “explosive rally” next as miners exit their latest buying period.
The latest data from the Hash Ribbon indicator shows that the price of BTC is now in a long-term “buy” territory for the first time since mid-May.
Bitcoin miner's “capital” has run out, says hash ribbon data
The Bitcoin Hash Ribbon tracks two moving averages of hashrate – the estimated combined processing power miners have devoted to the network.
When the 30-day moving average falls below its 60-day counterpart, it suggests that miners are struggling. When the opposite occurs, however, a historically reliable buy signal is created and a significant increase in BTC price may follow.
“Given the significant role miners play in maintaining the supply of BTC, historically ‘Mining Capitals' (30 DMA of Hash Rate)
On July 23, the indicator went “Capital” for the first time in more than two months. According to Cointelegraph, the last exit came in August 2023, when BTC/USD was trading below $30,000.
“BTC has just seen a rare Hash Ribbon ‘Buy' signal,” noted crypto trader Mikubul Crypto alongside price analysis.
“Whenever that happens, an explosive rally follows.”
Mikibul Crypto added in a separate post that traders should “prepare for a big rally.”
Source MiningPoolStats tracking raw data as of July 22 puts the Bitcoin hashrate at 676 exahashes per second (EH/s).
The price of BTC is up
BTC's price action initially lifted the market above $68,000 after recovering itself in lower timeframes.
Related: Bitcoin Trader Warns About Local BTC Price After $530M ETF Income
There are ongoing sell-side concerns from the pending payment of the exchange's Mount Gox creditors and the adoption of US Ethereum (ETH) exchange-traded funds (ETFs).
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
