We recently got a new buy signal from the Hash Ribbons indicator.
This metric helps us assess the level of stress in the Bitcoin mining ecosystem.
It’s not a big surprise considering that the hashrate has recently reached new all-time highs.
The Hash Ribbons simply compares the 30-day and 60-day moving averages of the hashrate to identify periods of significant stress for miners.
In such cases, it is important to understand that the signal is short-term negative.
- Why ?
Because when mining becomes unprofitable for certain miners, they are forced to sell BTC in order to stay operational.
(I won’t go into the details of equipment obsolescence or shutdowns here, as it’s not particularly relevant in this context.)
What matters is that these sell-offs often create interesting long-term buying opportunities.
It’s not complicated to analyze, this indicator has always been accurate except in 2021 during the China mining ban event.
Bottom line, this signal is telling you that buying the dip around here is a smart move.
Written by Darkfost
