Hash Ribbon, a market indicator defined by Glassnode, works on the premise that Bitcoin tends to bottom out when miners surrender. This happens when the cost of mining Bitcoin exceeds the potential return.
Hash ribbons historically marked the end of the minor yield phase when the 30-day moving average (MA) of the hash rate crossed the 60-day moving average and changed from the light red area to the dark red area in the chart below. increase. The indicator has historically shown promising buying opportunities, represented by a dark red to white shift, coupled with a shift in price momentum from negative to positive.
For the first time since the FTX collapse, the ribbon reversed, marked by an 8% drop in hash rate within days. Interestingly, the pattern of miners surrendering repeats itself each summer, probably due to the high cost of electricity at this time of year.
Historically, examples of minor surrenders have been seen in June 2020, May 2021, June 2022, and most recently July 2023. These yield periods average 1-2 months.
Summer Post Causes Bitcoin Miners to Surrender: A Regular Seasonal Trend First Appeared on CryptoSlate.