Bitcoin (BTC) August 14: Hash Ribbons give a buy signal!

After an extended phase of consolidation, notable moves look set to manifest in the price of BTC. The Hash Ribbon indicator is currently showing a buy signal, marking the end of the bitcoin (BTC) miners’ capitulation. Could it serve as a catalyst for the next bull market?

Bitcoin: the miners are back!

Since its yearly peak at $31,877, the price of bitcoin has seen a decline of 7%. This period of correction led to the capitulation of the miners due to an unfavorable situation in the market. However, the Hash Ribbons indicates that this Bitcoin (BTC) miner capitulation phase is coming to an end. This potentially suggests the imminent approach of a rise in the value of this flagship crypto.

Indeed, looking at the daily chart of BTC on TradingView, a blue dot stands out on the indicator. This dot is a significant buy signal for investors waiting for the next bull market. In addition, it is accompanied by the term “buy”.

This same signal appeared on January 14 on the Bitcoin (BTC) chart. After this signal, BTC had rallied 58%, reaching its yearly high at $31,877. If this situation is repeated, a rise up to around $47,000 could be envisaged, with the resumption of mining activities.

Hash Ribbons, a relevant indicator?

Created by Charles Edwards in 2019, the Hash Ribbons is an indicator designed to detect periods of capitulation by Bitcoin (BTC) miners. It is based on variations in the daily hash rate.

When miners temporarily suspend their operations due to unfavorable market conditions, the Hash Ribbons displays a green dot. Conversely, a blue dot signals the resumption of mining activities.

Nevertheless, this indicator fails to identify the lowest point in the price, implying that Bitcoin (BTC) could possibly touch a new low before starting to rise again.

For long-term investors, this blue dot could finally mark the long-awaited buy signal for the next bitcoin (BTC) bull-run.