Bitcoin (BTC) Hash Ribbons Signal End of Miner Capitulation, Price Momentum Flips Positive

The hash ribbon provides a compelling view of on-chain activity by tracking the behavior of miners, who are known to have a direct influence on the cryptocurrency's price.

Bitcoin has shown bullish price actions for the past three weeks, sparking optimism among investors. One technical indicator, the hash ribbon, highlights a positive price momentum.

The hash ribbon tracks miner activity, which is known to influence cryptocurrency prices. According to crypto analyst Ali Martinez, the indicator signals the end of miner capitulation, shifting BTC price momentum from negative to positive.

The hash ribbon indicator uses the 30-day and 60-day moving averages of Bitcoin’s hash rate to gauge miner activity and network health. When the 30-day moving average drops below the 60-day average, it indicates miner capitulation. Conversely, when the 30-day moving average crosses back up, it signals recovery and potential bullish price action.

The last miner capitulation began on June 17, as shown by the 30-day moving average crossing below the 60-day moving average in the price chart below. However, recent market dynamics have seen the 30-day moving average crossing back up, suggesting that miners are now optimistic.

Since the April 2024 halving, which reduced their daily revenue from an average of $70 million pre-halving to $30 million post-halving, Bitcoin miners have faced challenges. This revenue drop forced many miners to sell their BTC holdings to cover operational costs. However, recent data shows that miner capitulation may be ending as increased activity on the Bitcoin network pushed daily miner revenue back above $40 million.

Crypto on-chain intelligence platform Santiment observed that Bitcoin bullishness among market participants is at its peak. According to Santiment’s data, the ratio of positive versus negative comments about BTC on social media has reached its highest level since March 2023 as investors grow optimistic about a new all-time high.

This bullishness is largely attributed to the favorable mentions of Bitcoin at the recently concluded Bitcoin conference. During the conference, Republican presidential candidate Robert F. Kennedy Jr. expressed his bullish view on Bitcoin.

Moreover, former president and current Republican nominee Donald Trump changed his previous stance on Bitcoin, expressing support for the cryptocurrency. Trump also promised to fire SEC Chairman Gary Gensler if elected president, who is known for his strong approach towards Bitcoin and other cryptocurrencies.

This political support and positive sentiment on social media have contributed to mentions of Bitcoin reaching a new all-time high in August. At the time of writing, Bitcoin is trading at $67,500.

The above is the detailed content of Bitcoin (BTC) Hash Ribbons Signal End of Miner Capitulation, Price Momentum Flips Positive. For more information, please follow other related articles on the PHP Chinese website!