In March, the price of Bitcoin plunged by more than 50% to below $3,600. Since then, the dominant cryptocurrency has rallied by 197% to $10,700. At its yearly peak in August, BTC rose to as high as $12,500 across major exchanges.
Since March, a “buy zone” signal of the Bitcoin hash ribbon indicator has been a persistent BTC catalyst. The historically accurate macro on-chain indicator is hinting an uptrend for BTC again, after first lighting up in March.
In an interview, on-chain analyst Willy Woo explained that the hash ribbon has been in the “buy zone” since March. It recently broke out of the zone, suggesting that a broader uptrend could occur.
What The Hash Ribbon Indicator Is And Why It’s Significant For Bitcoin Price
Bitcoin is widely perceived as a store of value and a currency. Jack Dorsey, the CEO of Twitter and Square
Under that is a blockchain network that is maintained by computing power contributed by miners. The amount of computing power supporting the Bitcoin blockchain is a highly important metric to measure the blockchain’s fundamental strength.
The amount of computing power on Bitcoin is called hashrate. If the hashrate increases, it suggests that more miners are contributing computing power to the blockchain.
The basic theory of the hash ribbon indicator is that a Bitcoin bull cycle begins when miners capitulate. The term capitulation refers to when miners sell a significant amount of BTC, or smaller miners get shaken out. Capitulation could occur when the price of Bitcoin is too low for mining to be profitable.
When capitulation occurs, there