This week has been marked by a decline in the cryptocurrency market. On occasion, bitcoin like other altcoins have fallen significantly, to the point of causing losses exceeding the $600 million mark. But the day also saw signs that bitcoin’s dark days were over. Analysts on chain indeed see accumulations of gains in perspective on the basis of the hash ribbon.
The Magic of Hash Ribbons
Very early in the afternoon, Bitcoin Archive announced on Twitter a news that will raise the heads of traders disgusted with the recent turn of events. Here is the content of his tweet:
” The Hash Ribbon gives another buy signal!
This has been a very accurate indicator in the past, signaling big gains ahead for #Bitcoin.
Follow @caprioleio – he created this indicator »
A post that earned analyst comments on chain Lukasz Wydrawhich has already signaled the same buy signal on its own account.
” BOOM!
The buy signal for the hash ribbons on the #Bitcoin #BTC chart just flashed.
Historically, this is one of the best mid to long term buy indicators. I am waiting for it to be confirmed at the close of the day, because it could still be wrong. »
” I’m also waiting for the weekly close, which we’ll talk about on Monday. If the Chopped Ribbons buy signal is confirmed by then, I will talk about it in much more detail, relating it to the current chart structure.
Stay tuned ! »
A bull run in perspective ?
Bitcoin hash tapes present themselves as a tool that has been used in the past. Also note the existence of the difficulty ribbon, another bitcoin trading tool at your disposal.
Last year, TechPages highlighted the efficiency of the hash tape in an article where it talked about convincing results. The Hash Ribbons constitute a moving average composed of the bitcoin hash rate and the mining difficulty. Once this step is taken, the so-called “weak” miners capitulate and start selling their coins. It will be up to the stronger miners to come into play on occasion. And it is this rising signal that stimulates purchases, and consequently a return on investment of up to 5,000%.
Case in point: when bitcoin was trading at $1,200, the final signal favored a 5,000% return on investment. This allowed the queen of cryptocurrencies to reach 20,000 dollars, and to put it in the spotlight.
However, if the price of bitcoin is $30,000, this 5,000% return will propel it to a value of $1 million per coin. If it is 500%, a revaluation to $150,000 coin is possible.
In short, the Hash Rubbon that the analysts had just mentioned will certainly boost investor morale. So, while waiting for theeur confirmation, they better keep calm. Et not to rush into decision-making.
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