The Bitcoin Hash Ribbons: Another Infallible Buy Signal?
All quiet on the Bitcoin front as the apex cryptocurrency continues to follow a meandering, slightly boring, and predictable sideways trajectory between the $29,000 to $30,000 range. However, momentum is perhaps just starting to bubble up underneath Bitcoin’s wanderings as one of the most successful and trusted indicators has suddenly sprung into life – flashing a buy signal that was last seen at the beginning of the year, after which Bitcoin started to thrust its way out of the last bear market.
The Bitcoin hash rate
The Bitcoin hash rate is the amount of computing power that Bitcoin miners contribute to the network. The hash rate goes up when more miners are competing for blocks. On the flip side, when the price drops, or does not go up for a long period of time, miner capitulation happens, meaning that mining is no longer profitable, and miners take their machines offline.
Hash Ribbons as a reliable sign
Even though the Hash Ribbons are a lagging indicator, on the higher time frame they are a very reliable sign that a bottom or a dip in the Bitcoin price has been reached. Given that Bitcoin is at a rather crucial point in what is seen by some as just a bear market rally, and by others as the initial phase of the new bull market, this signal will perhaps tip the argument more in the favor of the latter exponents.
Bitcoin’s role in perilous financial times
A backdrop of dire economic warnings make for an incredibly interesting time for Bitcoin. The traditional monetary and banking system is on the edge of a cliff of financial oblivion, and should it go over this cliff, most financial assets might be expected to go with it. Bitcoin, being outside of the traditional financial system, is seen by many as a liferaft to which they could transfer their wealth in such an extreme scenario.
Bitcoin’s properties as a store of wealth
Bitcoin is a sovereign store of wealth that is scarce, predictable, and the most secure computing system on the planet. Those looking to save themselves in the perilous time to come would do well to investigate Bitcoin’s properties and consider it as a potential safeguard for their wealth.
Hot Take:
With the Bitcoin Hash Ribbons flashing a buy signal, it seems that Bitcoin may be on the cusp of another significant price movement. As the traditional financial system teeters on the edge of collapse, more investors are turning to Bitcoin as a potential liferaft. Its properties as a secure and sovereign store of wealth make it an attractive option in these perilous times. Whether this is just a bear market rally or the start of a new bull market remains to be seen, but the Hash Ribbons signal certainly adds weight to the argument for the latter.
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