Bitcoin Flashes Indicator That Often Precedes Higher Prices: CryptoQuant
Crypto Quant’s well-regarded Hash Ribbons method of technical analysis reveals that the protocol is at a stage that is characterized by miner “capitulation”; a radical bombardment in the system. One of the favours that Hash Ribbons, Cryptos original creation, are the so-called bull markets (the green ones) which are the prelude to huge price increases in the near future.
Hash Rate Hits All-Time High
The new information that has come out in the last few days from CryptoQuant is more optimistic when compared to the one which triggered the faded bearish scenario. It is pointed out on the web that Hash Ribbons, a tension sensor that is used by miners, at this point in time gives favorable sign.
It measures Bitcoin’s hash rate via the 30 and 60-day moving averages. We also learn from CryptoQuant that the end of miner capitulation was the major event that led to the bridge between hash rate and the current 638 exahashes per network second. This is the highest it has ever been.
Now the miners are working with the faster mining equipment and consequently, the network is more powerful. According to CryptoQuant, miners buy the same amount of Bitcoins to satisfy the demand for the new faster equipment but when they sell consider the sale price as more stable. Eventually, the prices may go up in the long run.
Hash Ribbons ‘Often’ Precedes Price Rally
By April 2024, Bitcoin had faced the fourth reduction in block rewards by half, which went down from 6.25 BTC to 3.125 BTC. The rate that windowed meteorically was too good to be true, due to the miner’s sobering up and the water break, the price momentum was shifted to the downward side.
CryptoQuant finds out that the current Hash ribbons flash is the first after the 2024 halving. This is a “positive signal” for the cryptocurrency market partly due to the fact that the pressure that mining companies put on the market will decrease.
“The indicator doesn’t necessarily predict the exact price bottom, but it mostly leads to higher prices by showing a reduction in selling pressure from miners”, CryptoQuant explained.
At this moment, Bitcoin is worth $59,086 and market actors are observing these potential bullish signs that might be pointers to a new rally.
