Bitcoin hash rate surpasses another ATH, Hash Ribbon indicates miner capitulation is over

exchange68September 13, 2024

0 0 2 minutes read

Definition

Hash rate is defined as the average estimated number of hashes per second produced by the miners in the network.

The Hash Ribbon indicator shows that the worst of the miner capitulation is over when the 30-day moving average (MA) of the hash rate crosses above the 60-day MA (switch from light red to dark red areas). Times when this occurs and the price momentum switches from negative to positive have shown to be good buying opportunities (switch from dark red to white).

Quick Take

On Jan. 20, Bitcoin (BTC) hash rate surpassed another all-time high (ATH), remarkable to see in a bear market.
In the past few weeks, BTC hash rate has experienced two isolated 20% drops in hash rate and has managed to recover.
Hash rate has grown every day in 2023 so far.
The Hash Ribbon indicator has diverged and signals the end of miner capitulation is a market indicator that assumes that BTC tends to reach a bottom when miners capitulate,

Hash Rate adjustment: (Source: Glassnode)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.