Bitcoin (BTC) is expected to experience its next “explosive rally” as miners emerge from their recent capitulation period.
According to the latest data from the Hash Ribbon indicator, the BTC price has entered long-term “buy” territory for the first time since mid-May.
Bitcoin Miner “Surrender” Is Over, According to Hash Ribbon Data
The Bitcoin hash ribbon tracks two moving averages of the hash rate, which is the combined processing power miners are estimated to be dedicating to the network.
When the 30-day moving average falls below the 60-day equivalent, it suggests that miners are struggling. However, when the opposite happens, it generates a historically reliable buy signal and a significant BTC price rally can follow.
“Given the dominant role of miners in securing Bitcoin supply, historically ‘miner capitulation’ (30 DMA hash rate < 60 DMA hash rate) has been a period of price volatility, often synchronizing with major price discounts and long-term opportunities,” explains Charles Edwards, founder of Hash Ribbon and quantitative Bitcoin and digital asset fund Capriole Investments.
On July 23, the indicator broke out of a “capitulation” for the first time in two months. As Cointelegraph reported, the last breakout was in August 2023, when BTC/USD was trading below $30,000.
Popular trader Mikybull Crypto responded with a price analysis of X, writing, “BTC witnesses rare hash ribbon ‘buy’ signal.”
“Every time something like this happens, an explosive rally follows.”
Mikybull Crypto added in a separate post that traders should “be prepared for a massive rally.”
According to raw data from monitoring resource MiningPoolStats, as of July 22, the Bitcoin hash rate is 676 exahashes per second (EH/s).
BTC price rise pause
BTC price action is currently in a volatile state on lower time frames after a recovery that initially saw the market break $68,000.
Related: Bitcoin Traders Warn of Local BTC Price Peak After $530 Million ETF Inflows
Sell-side concerns remain as payments to creditors of the shuttered Mt. Gox exchange continue and the market reaction to the U.S. spot Ether (ETH) exchange-traded fund (ETF) continues.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.