Bitcoin miner are concerned because the capitulation signal of the hash ribbons flashes, according to the market analysts

Bitcoin miner are concerned because the capitulation signal of the hash ribbons flashes, according to the market analysts

Capitulation signal of the hash ribbons scored-warning for Bitcoin-Miner

The renowned investment fund founder Charles Edwards recently warned of an alarming trend. According to Edwards, the capitulation signal of the Hash Ribbons has flashed, which has often been accompanied by difficult times for Bitcoin-Miner in the past.

in 2023 Bitcoin experienced a remarkable increase in the hash rate by 50 %. However, this suddenly flattened and led to the appearance of the capitulation signal of the Hash Ribbons. Edwards emphasizes that this signal is neither a clear sales nor a purchase signal. Nevertheless, investors should handle their risk management carefully until a new price rally.

This assessment is also supported by Marktanlayst Lukasz Wydra, who emphasizes that the Cross of Cross of the Bitcoin Hash bands is a signal for uncertainty. In the past, there were 14 similar events, three of which led to Rallyes, six to sideways movements and five to declines.

Wydra pursues a statistical approach and assures investors that the surrender of the hash ribbons does not add any significant damage to the market. On the contrary, when the surrender finally subsides, this will trigger a strong purchase signal that has been very effective in the past.

The last capitulation signal of the Hash Ribbons performed at the end of November 2022. This was followed by a longer sideways trend until the purchase signal flashed until the beginning of January. The result was a rapid rally from Bitcoin and a memorable start of the year.

The Bitcoin Hash Ribbons are a powerful tool to recognize times when BTC-Miner is in need and possibly surrender. These phases often coincide with large deep stalls of the Bitcoin price, which makes them attractive purchase opportunities for clever investors.

miner play a crucial role in securing the Bitcoin network and processing transactions. In times of faster price increases that follow strong declines, it can be financially difficult for some miners to continue their operation, which means that they will switch off their mining machines.

Charles Edwards explains that the surrender of the miners could be the strongest purchase signal that can be observed on the Bitcoin market. However, the indicator does not identify any exact low points of the price. Instead, times are identified when Miner switches off their drilling islands due to unfavorable market conditions, which leads to a decline in hash rates.

These moments often fall together with the macroeconomic deep stalls of the Bitcoin price, which makes them at affordable times for the accumulation of Bitcoin.