BTC was able to recover during the weekend and went into the consolidation phase. However, the latest information suggests that we could see growth, thanks to the most profitable signal.
BTC showed a buy signal
Indicator hash ribbon enjoys great popularity in the world of trading. This is one of the most accurate indicators, which in the case of BTC is often referred to as the most profitable. This indicator is closely related to the activity of miners. This is also why it is necessary to correctly define the hashrate.
Hashrate is basically a measure of the total amount of computing power that miners bring to the BTC network. During times of correction, the activity of miners is very low. This process, of course, creates a downward trend in the hashrate indicator. In the past, low activity or capitulation of miners was considered a so-called “the bottom”. And precisely the period of capitulation of miners is the main domain of the hash ribbon indicator, which was created by an analyst Charles Edwards.
This popular indicator uses two different hashrate moving averages. Specifically, 30-day and 60-day. These two averages can define changes in miners’ behavior.
The given graph shows the individual periods when miners surrendered. These periods are marked by the hash ribbons indicator. Whenever the 30-day moving average goes below the 60-day average, it is the initial phase of miners surrendering. Otherwise, it is the end, and therefore the beginning of a growth trend.
We are currently witnessing capitulation of miners, which ended after a long period of 71 days. Also, two years have passed since the last halving. In the past, this connection precisely defined the beginning of a growth trend.