The post Bitcoin’s Explosive Rally Imminent? Key Indicator Flashes Rare Buy Signal appeared first on Coinpedia Fintech News
The past two weeks marked a turning point for Bitcoin, which has shown a spectacular increase in its price. However, this upward trend revives the enthusiasm of investors, who see their digital assets gaining value.
Meanwhile, the hash ribbons indicator, a crucial tool for predicting Bitcoin price movements, has shifted from a “capitulation” phase to a “buy” signal for the first time in 2024. This change suggests that Bitcoin is poised for an explosive rally, with miners exiting a challenging period.
Hash Ribbons Indicator: A Bullish Shift
The hash ribbons indicator which tracks Bitcoin’s hashrate using two moving averages of both the 30-day and the 60-day suggestion. When the 30-day average falls below the 60-day average, it signals miner struggles and a potential downturn.
Conversely, when the 30-day average surpasses the 60-day, it generates a reliable “buy” signal, historically leading to significant price increases. This bullish signal has just emerged, marking a potential turning point for Bitcoin’s market performance.
End of Miner Capitulation
As of July 23, the hash ribbons indicator exited its “capitulation” phase, a signal that hasn’t been seen in over two months. The last similar signal in August 2023 preceded a notable rise in Bitcoin’s price from under $30,000.
According to Charles Edwards, creator of the hash ribbons and founder of Capriole Investments, this shift often corresponds with significant buying opportunities, despite the associated volatility.
Meanwhile, Trader Mikybull Crypto has also highlighted the significance of this rare “buy” signal. He predicts that an explosive rally could follow, based on historical patterns.
Current data from MiningPoolStats shows Bitcoin’s hashrate at 652 exahashes per second, reinforcing the optimistic outlook
Ongoing Market Concerns
Despite this bullish signal, Bitcoin’s price action remains somewhat volatile. After a brief surge past $68,000, concerns persist due to ongoing payouts to creditors of the defunct Mt. Gox exchange and the market’s response to upcoming U.S. spot Ether exchange-traded funds.
While these factors create uncertainty, the recent shift in the hash ribbons indicator provides a hopeful signal for Bitcoin’s near-term performance.
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