It seems that widely used Hash Ribbon model has now failed for first time, with crypto winter shaping up to be extremely severe
According to community-driven cryptocurrency analytics firm crypto quantThe popular hash ribbon model has now failed for the first time.
The popular theory revolves around the assumption that Bitcoin tends to reach the bottom of a bearish cycle when miners capitulate.
The capitulation phase occurs when mining bitcoin becomes unprofitable following a severe price correction, forcing miners to shut down their equipment.
The model was first introduced by Charles Edwards, founder of Capriole Investments, back in 2019. It is based on two metrics: Bitcoin’s hashrate — the total computational power of the network — and mining difficulty, a measure of how difficult it is to mine new cryptocurrencies.
Hashrate and difficulty are presented as two simple moving average lines (“ribbons”). When the ribbons cross each other, it signals the beginning of the Minor Capitulation.
According to Edwards, the best time to invest in Bitcoin is in the middle of the capitulation phase.
However, as CryptoQuant contributor Dan Lim points out, the hash ribbon model’s dreaded death cross came after the golden cross without a surge in price Bitcoin,
