The recent trend in the Bitcoin ticker ticker has formed a pattern that has historically been a buy signal for cryptocurrencies.
Bitcoin hash bar buy signal goes off as miner surrender ends
As one analyst explained on Twitter, it appears that the 71-day period for BTC miners has ended today.
Before trying to understand what the tick bar indicator does; It is best to first look at the “Fragmentation” scale.
Hash is a measure of the total amount of computing power connected to the Bitcoin blockchain by miners. during bear markets; The income of some miners falls so low that it becomes unprofitable for them to operate their operations. At such times, their only option is to turn off their devices; Which is recorded as a downtrend in the hash rate.
in previous bear markets; Major bottoms generally occurred during periods of miner concessions, when a large number of miners quickly put out of business due to reduced revenue.
One of the indicators that determines these miner surrender periods is the hash bars. This scale is used; Created by analyst Charles Edwards, two different segmentation moving averages; The 30-day moving average and the 60-day moving average, to notice changes in miner behavior.
Here is a graph showing the trend in Bitcoin hash bars over the past few years:
Looks like the 30-day SMA hash rate just surpassed the 60-day SMA | Source: Charles Edwards on Twitter As you can see in the chart above ; The Bitcoin miner surrender periods are marked with the tick bars indicator.
When the 30 day MA version of the tick falls below the 60 day moving average line; It is assumed that the miners have begun the stage of surrender.
On the other hand, a break above the 60-day moving average by the 30-day moving average signals the end of capitulation by string validators.
When this type of surrender occurs that ends with the crossing of the hash bars; A buy signal for cryptocurrency is triggered.
But even among these buy signals; There are some of them that are particularly profitable. These signals are formed following miners’ concessions that occur more than two years following any halving event.
Today, the hash bars once once more chart the historical pattern of the buy signal as the last streak of miner capitulations is over following 71 days. It’s also now more than two years since the last half happened; Which, judging by the past trend, may indicate that this is one of the rare “more profitable” buy signals.
