Vladislav Sopov
According to veteran cryptocurrency analyst Charles Edwards, the Bitcoin (BTC) miner capitulation may be over
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- Bitcoin (BTC) Hash Ribbon Says Miner Capitulation Is Over: Charles Edwards
- What is Hash Ribbon and why is this metric so important?
Statistics on Bitcoin (BTC) hashrate fluctuations tracked by Charles Edwards, founder of Capriole Investments firm, suggest that the peak of miner pessimism may have been reached.
Bitcoin (BTC) Hash Ribbon Says Miner Capitulation Is Over: Charles Edwards
Mr Edwards has shared on Twitter that Hash Ribbon — an indicator of Bitcoin (BTC) miner sentiment — is providing bullish signals for the largest cryptocurrency.
Hash Ribbon buy signal!
The #Bitcoin miners’ capitulation officially ended today and at 71 days is the third longest capitulation in history.
This capitulation zone was longer than 2021 and just two days shorter than 2018 when the price pic.twitter.com/B3mMhKQPls hit $3.1k
— Charles Edwards (@caprioleio) August 20, 2022
According to him, that time of miner surrender — the time when distressed miners shut down their mining equipment — is over. This capitulation was painful for the market as it was only two days shorter than the one that propelled BTC price to $3,100 in crypto winter 2018.
Historically, Bitcoin (BTC) made its key lows during miner capitulations. Also, the capitulations that coincided with the second half of Bitcoin’s (BTC) mining cycles resulted in the most reliable bullish signals.
To sue
The second phase for this cycle began on May 10, 2022; this makes Charles Edwards’ prediction very optimistic.
What is Hash Ribbon and why is this metric so important?
The Hash Ribbon indicator was invented by Charles Edwards in 2019; he described the concept of this indicator in his essay Hash Ribbons & Bitcoin Bottoms.
This indicator is based on the correlation between the 30-day and 60-day moving averages (MAs) of Bitcoin (BTC) net hashrate, which is the amount of hashes calculated by all miners of the Bitcoin (BTC) network.
If 30 DMA falls below 60 DMA, analysts point to miner capitulation; the reverse situation occurs when the surrender is complete. Safe bullish signals are registered when 30 DMA spikes above 60 DMA along with price increases.
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