$BTC
๐ฅ Bitcoin Hash Ribbons Signal Recovery, Potential $90K Bounce :
The Bitcoin Hash Ribbons indicator is showing a potential recovery signal, historically seen as a "buy" sign, which analysts suggest could be a precursor to a bounce towards the $90,000 price range.
Understanding the Hash Ribbons Signal
The Hash Ribbons indicator tracks the 30-day and 60-day simple moving averages of the Bitcoin hash rate, which is a measure of the total computing power dedicated to mining the cryptocurrency.
Miner Capitulation: When the short-term (30-day) moving average drops below the long-term (60-day) moving average, it indicates that some miners are shutting down operations, often due to low profitability. This phase is known as miner capitulation.
"Buy" Signal: A "buy" signal is triggered when the 30-day moving average firmly crosses back above the 60-day moving average. This suggests that the capitulation phase is over and miner economics are restabilizing.
Current Outlook and Price Potential
Analysts view the recent signal as a potentially bullish development after a period of consolidation and volatility.
Bull Market Correction: The prevailing sentiment among some experts is that Bitcoin is currently in a bull-market correction, rather than a full bear market.
$90K Range: A potential bounce could see Bitcoin trading in the $83,000 to $95,000 range, with some critical resistance around $92,000. A sustained move above $92,000 could indicate a reclaim of the range and potentially lead to the $100,000 level.
Short-term Caution: While long-term indicators may be positive, some technical analysis suggests that until certain price levels are reclaimed, the structure still presents a high risk of a downward move in the short term, so caution is advised.
