Bullish outlook: the Bitcoin signal that preceded the 330% rally to $ 14,000 is now blinking again
If you've been on crypto-Twitter, you've probably heard the term “miner surrender” over and over again regarding Bitcoin.
For those who lived under a rock: Bitcoin's decline started earlier this year caused the hash rate of the underlying network to stall. This trend in turn led to the “hash ribbons” – an indicator that tracks the moving average of the bitcoin hash rate – suggesting “miner surrender”.
Last was just before the now famous crash of $ 6. 000 $ 3. 000 end 2008 like this. When this signal came out late last month, investors feared the worst and expected Bitcoin to fall off a cliff again.
And so did BTC and fell to 6 at the beginning of the month. 400 $. But now the outlook for the bulls is improving as the miner surrender has ended – and that's a good omen for the future of the cryptocurrency market.
Bitcoin hash ribbons signal bulls a massive upswing
A few days before Christmas the “recovery”, i.e. the end of the miner's capitulation, just started on the one-day Bitcoin chart.
While this was inherently bullish, the hash ribbons had not yet given a buy signal, which has long been seen on the macro scale as an almost certain, complete reversal of the crypto market.
According to Charles Edwards, digital asset manager, a “buy” signal forms on the hash ribbons indicator – just a few days after “recovery” was signaled.
And that's remarkable. Earlier “buy” signals from the hash bands came shortly after macroeconomic bottoming, followed by full-fledged bullish reversals. An example of this: In the middle of January, the hash ribbons triggered a “purchase” – months before BTC of $ 4. 000 rose to $ 5. 000 This has triggered a domino effect, the BTC up to June on $ 14. 000 pressed and one 330% recovery from bottom ended.
And the bulls don't just celebrate the end of the miner's capitulation. According to Scott “The Wolf of All Streets” Melker, Bitcoin's performance last week sent a very important signal on the weekly chart: “a massive bullish divergence in the oversold area of the Stochastic Relative Strength Index.”
The next few days are guaranteed to provide information about the direction in which the Bitcoin price will develop in the short term.
Proof of text: newsbtc