According to seasoned cryptocurrency analyst Charles Edwards, Bitcoin (BTC) miners’ capitulation might be over
Bitcoin (BTC) hash rate volatility data tracked by Charles Edwards, founder of the Capriole Investments firm, suggests miners’ pessimism may be peaking.
Bitcoin (BTC) Hash Ribbon says miners’ capitulation is over: Charles Edwards
Mr. Edwards has taken to Twitter to share that Hash Ribbon — an indicator of Bitcoin (BTC) miners’ sentiment — prints bullish signals for the largest cryptocurrency.
According to him, the period of miners’ surrender – the period when endangered miners are putting off their mining gear – has come to an end. This capitulation was painful for the market as it was only two days shorter than the one that pushed the BTC price to $3,100 in the 2018 Crypto Winter.
Historically, Bitcoin (BTC) touched its major lows during miners’ capitulations. Also, the capitulations that coincided with the second halves of Bitcoin (BTC) mining cycles result in most reliable bullish signals.
The second phase of this cycle began on May 10, 2022; Which makes Charles Edwards’ prediction very optimistic.
What is Hash Ribbon and why is this metric crucial?
The Hash Ribbon indicator was invented by Charles Edwards in 2019; he described the concept of this indicator in his Hash Ribbons & Bitcoin Bottoms essay.
This indicator is based on the correlation between the 30- and 60-day moving averages (MA) of the bitcoin (BTC) net hashrate, i.e. the amount of hash calculated by all miners in the bitcoin (BTC) network.
When 30 DMA drops below 60 DMA, analysts indicate miners’ capitulation; the opposite situation takes place when the capitulation is over. Secure bullish signals are registered when 30 DMA spikes above 60 DMA together with price increases.
