Technical Indicators Show Strong Bitcoin Bullishness
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Bitcoin has definitely performed on the bullish side for the past three weeks. Many investors are now convinced of the full return of bullish price actions, and various technical indicators support this surge in optimism. One such indicator is the hash ribbon, which highlights a positive price momentum for Bitcoin. Related Reading The hash ribbon provides a compelling view of on-chain activity by tracking the behavior of miners, who are known to have a direct influence on the cryptocurrency’s price. Price Momentum Flips Positive Crypto analyst Ali Martinez highlighted an intriguing phenomenon with the hash ribbon indicator on social media platform X. As noted by the analyst, the hash ribbon is signaling the end of miner capitulation, which suggests that the BTC price momentum has shifted from negative to positive. The hash ribbon indicator analyzes Bitcoin’s hash rate using the 30-day and 60-day moving averages to gauge miner activity and network health. When the 30-day moving average drops below the 60-day, it indicates miner capitulation; when it crosses back above, it signals recovery and potential bullish price action. As shown by the price chart below, the last miner capitulation began on June 17 after the 30-day moving average crossed below the 60-day moving average. Recent market dynamics have seen the 30-day moving average crossing back up, suggesting that miners are now at a bullish outlook. Bitcoin miners have faced challenges since the April 2024 halving, which reduced their daily revenue from an average of $70 million pre-halving to $30 million post-halving. This revenue drop forced many miners to sell their BTC holdings to cover operational costs. However, recent data indicates that miner capitulation may be nearing its end, as increased activity on the Bitcoin network pushed daily miner revenue back above $40 million. Bitcoin is now trading at $67,492. Chart:…
Filed under: News - @ July 28, 2024 4:20 pm