Definition
The Hash Ribbon is a market indicator that assumes that Bitcoin tends to achieve a backside when miners capitulate, i.e., when Bitcoin turns into too costly to mine relative to the price of mining.
The Hash Ribbon signifies that the worst of the miner capitulation is over when the 30d MA of the hash charge crosses above the 60d MA (change from mild pink to darkish pink areas).
Instances when this happens, and the value momentum switches from adverse to constructive, have proven to be good shopping for alternatives (change from darkish pink to white).
Fast Take
- Final week, CryptoSlate analyzed the state of the mining business and believed miners have been in a a lot stronger place than final yr.
- That’s actually the case, however in accordance with the hash ribbon metric, the 30-day and 60-day shifting averages are about to converge.
- Traditionally, this has negatively impacted the value of Bitcoin as a result of miners need to promote their cash to cowl operational prices.
- Whereas Bitcoin is taken into account low cost, mining operational prices similar to power are excessive, so miners might want to offload their saved cash, which will increase liquidity and may push costs down.
- For the previous two summers, we’ve got seen some type of mining capitulation, Could 2021 noticed the China mining ban, and final summer season with the collapse of Terra Luna.
The put up Are we on the verge of one other Bitcoin miner capitulation? appeared first on CryptoSlate.
