The Hash Ribbons indicator has just issued a new buy signal, suggesting that Bitcoin (BTC) is preparing to enter another bullish trend.
Hash Ribbons is a tool that helps assess the level of 'stress' in the Bitcoin mining ecosystem. Historically, when miners face difficulties, the hashrate typically decreases, causing the 30-day moving average to drop below the 60-day moving average. However, when the 30-day moving average rises back above, it indicates that miners are gradually recovering.
According to data from CryptoQuant, the Hash Ribbons indicator is currently signaling a 'buy'.
Why is this signal important right now?
At the time of writing, Bitcoin is trading around $104,611, down 3.62% over the past week. After a strong price surge to a new historical high, Bitcoin is currently accumulating around the psychological threshold of $100,000 — a zone that could potentially become the starting point for the next increase.
In addition, profit-taking by institutions after the recent surge may be the reason for the slowdown of BTC's upward momentum, leading to a sideways trend.
In previous cycles such as 2013, 2016, and 2020, the Hash Ribbons indicator signaled the beginning of major bull runs, originating from the bottom or price accumulation phase. Currently, the crossover of the Hash Ribbons could create new bullish momentum, with the expectation that the bulls will push prices above the recent peak of $112,500.
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