Bitcoin’s been on a tear lately, soaring over 28% in just 16 days. But after hitting a wall at $68,500, it’s taken a slight dip. Don’t worry, though, some experts are saying this is just a temporary blip and the bull run is far from over.
The Hash Ribbon: A Bitcoin Buy Signal
One of these experts is Charles Edwards, founder of Capriole Investments. He’s excited because a technical indicator called the “Hash Ribbon” just flashed a “buy” signal. This signal is a big deal because it’s historically been incredibly accurate, predicting major Bitcoin price bottoms 84% of the time.
What’s the Hash Ribbon?
The Hash Ribbon is based on the relationship between Bitcoin’s hash rate (the computing power used to mine Bitcoin) and its price. When the price drops or mining costs rise, some miners might shut down temporarily, which is called “miner capitulation.” This is a crucial moment because when miners start mining again, it’s often a sign that Bitcoin’s price is about to bounce back.
The Hash Ribbon uses moving averages of the hash rate to identify this pattern. When the shorter-term moving average crosses above the longer-term average after a period of miner capitulation, it’s a “buy” signal.
Experts Are Bullish
Other analysts are also optimistic about this signal. One analyst, known as @CryptoJelleNL on Twitter, believes this “buy” signal suggests that the next big Bitcoin price surge is just around the corner. He even thinks $80,000 is within reach!
Another analyst, @DaFinancialPage, notes that the Hash Ribbon has been right 84% of the time, making it a powerful indicator.
A Word of Caution
While the Hash Ribbon is a strong signal, it’s not foolproof. There have been a few times when it didn’t predict a price surge. So, it’s important to remember that no indicator is perfect, and there’s always some risk involved in the crypto market.
What’s Next for Bitcoin?
Technically, Bitcoin needs to hold support at $65,943 to continue its climb. If it can do that, it could hit interim targets at $69,384 and $73,767 before potentially reaching the coveted $80,000 level.
