Bitcoin’s price is likely to surge in the coming months, according to Capriole Investments, a leading digital asset fund. This prediction is based on a classic indicator called the Hash Ribbons metric, which has only flashed a buy signal once since Bitcoin’s price dropped to $25,000.
The Hash Ribbons metric measures the activity of Bitcoin miners, who are responsible for verifying transactions on the blockchain. The metric is considered a reliable indicator of the market’s sentiment, as it shows when miners are struggling to make a profit.
According to Charles Edwards, founder of Capriole Investments, the current Hash Ribbons signal is a strong indication that the market is about to turn around. He explained that the signal is triggered when the 60-day moving average of hash rate drops below the 30-day moving average, which indicates that miners are struggling to make a profit.
“This is a classic buy signal,” Edwards said. “It’s a sign that the market is about to turn around and start going up.”
Edwards noted that this signal has been accurate in the past, and that it has preceded major rallies in Bitcoin’s price. For example, the last time this signal was triggered was in August 2023, when Bitcoin‘s price was around $25,000. In the following months, the price of Bitcoin surged to over $50,000.
The current signal is particularly strong because it has been triggered by the recent drop in hash rate, which is a measure of the processing power dedicated to the network. This drop has been caused by the recent block subsidy halving, which reduced the reward for miners by half.
Overall, Edwards believes that the current signal is a strong indication that Bitcoin‘s price is likely to go up in the coming months. He recommends holding onto your Bitcoin and waiting for the price to rise.
“I think we’re in for a big rally,” Edwards said. “The Hash Ribbons signal is a reliable indicator of market sentiment, and it’s telling us that the market is about to turn around.“
Summary Review: The article suggests that Bitcoin’s price is likely to surge in the coming months due to the Hash Ribbons signal, a classic indicator that has been accurate in the past. The signal is triggered by a drop in hash rate, which indicates that miners are struggling to make a profit, and is a strong indication that the market is about to turn around. With this signal, experts believe that Bitcoin‘s price is poised for a big rally, and recommend holding onto your Bitcoin and waiting for the price to rise.
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