Bitcoin has been on a roll lately, but things have been a bit quiet in the crypto world recently. However, some interesting on-chain data suggests that this calm might not last long.
Bitcoin Miners Are Back in Business
A popular crypto analyst, Ali Martinez, noticed that Bitcoin miners are starting to come back to the network. This is based on a technical indicator called the Hash Ribbon, which tracks the Bitcoin hash rate.
The Hash Ribbon uses two moving averages: a short-term one (30 days) and a long-term one (60 days). When the short-term average dips below the long-term average, it means miners are selling off their Bitcoin, which is known as “capitulation.” But when the long-term average falls below the short-term average, it signals the end of capitulation and potentially the start of a recovery.
The Hash Ribbon is currently showing this positive cross for Bitcoin, suggesting that miners are becoming more profitable and returning to the network. Historically, this has been a bullish sign for Bitcoin, often leading to significant price increases.
Other Signs Point to a Bullish Future
Another indicator, the Bitcoin Miner Profit/Loss Sustainability metric, also shows that miners have been making some profit recently. This means they’re being fairly compensated for their work.
Bitcoin Price Update
As of right now, Bitcoin is trading around $68,230, up slightly in the last 24 hours. While the price hasn’t seen much movement recently, it’s still the largest cryptocurrency with a market cap of over $1.33 trillion.
The Bottom Line
The return of Bitcoin miners to the network is a positive sign for the cryptocurrency. This, along with other indicators, suggests that Bitcoin could be poised for a strong recovery. If you’re thinking about buying Bitcoin, now might be a good time to consider it.
