Bitcoin has definitely turned bullish over the past three weeks. Many investors are now convinced that the bullish price action is about to fully return, and various technical indicators support this surge of optimism. One such indicator is the hash ribbon, which highlights Bitcoin’s positive price momentum.
Hash Ribbon tracks the behavior of miners known to directly influence cryptocurrency prices, providing compelling insights into on-chain activity.
Price momentum turns positive
Cryptocurrency analyst Ali Martinez has highlighted an interesting phenomenon regarding the hash ribbon indicator on social media platform X. As the analyst points out, the hash ribbon signals the end of miner capitulation, suggesting that BTC price momentum has shifted from negative to positive.
The Hash Ribbon indicator measures miner activity and network health by analyzing Bitcoin’s hash rate using 30-day and 60-day moving averages. When the 30-day moving average falls below the 60-day, it indicates miner capitulation, while when it crosses back above, it indicates recovery and potential bullish price action.
As you can see from the price chart below, the last miner capitulation began on June 17th when the 30-day moving average crossed below the 60-day moving average. Looking at the recent market trend, the 30-day moving average is rising again, suggesting that miners are now in a bullish position.
Bitcoin miners have been struggling since the April 2024 halving. The daily profit has dropped from an average of $70 million before the halving to $30 million after the halving. This drop in profit has forced many miners to sell their BTC holdings to cover their operating expenses. However, recent data suggests that the capitulation may be coming to an end as daily miner profits have once again surpassed $40 million due to increased activity on the Bitcoin network.
Positive sentiment on Bitcoin reaches highest level in 16 months
Santiment, a cryptocurrency on-chain intelligence platform that is still in a bullish mood, has pointed out that Bitcoin’s bullishness has now peaked among market participants. According to Santiment’s data, the ratio of positive to negative comments about BTC on social media has soared to its highest level since March 2023, indicating that investors are increasingly optimistic about a new all-time high.
The surge in positive sentiment can be largely attributed to favorable comments about Bitcoin at the recently concluded Bitcoin conference, where Republican presidential candidate Robert F. Kennedy Jr. reiterated his bullish stance on Bitcoin.
Also, former President and current Republican candidate Donald Trump has changed his previous stance on Bitcoin and expressed support for the cryptocurrency. Trump has also promised that if elected President, he will fire SEC Chairman Gary Gensler, who is known for his very strict approach to Bitcoin and other cryptocurrencies.
Political support and positive sentiment on social media combined to drive Bitcoin to new all-time highs in August, with Bitcoin trading at $67,500 at the time of writing.
Featured image from Vecteezy, charts from TradingView
Source: NewsBTC.com