Bitcoin hash ribbons indicate first buy signal since BTC price reached $25K

Bitcoin’s bull run is expected to resume as the hash ribbons metric shows promising signals, according to quantitative Bitcoin and digital asset fund Capriole Investments. The hash rate, which measures the processing power dedicated to the network by Bitcoin miners, has decreased since the block subsidy halving in April. This decline is considered normal as miners adjust to the new economic reality. As a result, the hash ribbons have entered a “capitulation” phase, which is a classic signal to buy Bitcoin. Capriole founder Charles Edwards explains that this phase often coincides with the shuttering of miner operations and bankruptcies. In the past, these periods of weakness in the hash ribbons have been followed by a significant increase in Bitcoin’s price. The last capitulation event occurred in August 2023 when BTC/USD was trading at around $25,000. Despite some skepticism about the relevance of the hash ribbons signal, other on-chain indicators also suggest that Bitcoin’s price will continue to rise. Overall, the current technical and fundamental factors indicate that Bitcoin is poised to go much higher. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.