After losing about 20% of its value and being rejected from the $25k level, Bitcoin is now trading above the $21k mark. And just as you might be expecting, Bitcoin’s most crucial buy signal has now been activated. I’m referring to the “hash ribbon” indicator, which has helped many investors make lucrative bets. The decision to buy or not based on a signal is now yours, but historical evidence suggests that you might want to.
Bitcoin ‘hash ribbon’ indicator
The “hash ribbon” indicator accounts for Bitcoin’s hash rate. It represents the total amount of computer power used to protect the Bitcoin blockchain network. So while a larger hash rate improves security, it also makes mining more difficult.
Because of this, mining BTC for tiny miners may also stop being profitable, causing them to stop operating.
Also Read: For BTC Mining Best Graphics Cards in 2022
BTC’s price likewise drops during this surrender phase, when its hash rate dramatically drops. The hash ribbon indicator also shows a capitulation or decline. When a hash ribbon is red, we know to sell, and when it turns green, we know to purchase.
Following this single signal has historically shown to be extremely accurate. We can be enthusiastic about this even though it might take some time for the rally to get going.
When the 30-day moving average crosses over the 60-day moving average from the bottom, a buy signal is generated. The opposite is a sell signal, which is when it moves downward after cutting through the top. Although it’s possible that things don’t always turn out exactly the same way, it’s still vital to keep an eye out for the same.
Bitcoin rally in h2 2022
Even senior Bloomberg analyst Mike McGlone stated that he anticipates a recovery in the cryptocurrency markets in the second half of 2022. And now the Bitcoin hash ribbon indicator has also given us a buy signal. Is this a sign that a rally is about to occur? Most likely not! In my personal opinion, the market has not yet reached its bottom, and there will likely be one more significant decline before the rally.
What do you think as the most reliable purchase signal for bitcoin appears? Also, do you see a recovery in h2 2022? And do tell your friends about our content if you find it to be informative.