Bitcoin's Price Stability Is a ‘Good Thing’, Co-Owner Argues

Cornelia Mascio
Luglio 18, 2020

So, when the ribbons - the green and blue simple moving average lines of bitcoin's difficulty and hash rate cross each other, miners are capitulating. Miners usually capitulate (or sell Bitcoin) when the digital currency becomes too expensive to mine relative to the mining cost.

Performance of Bitcoin following miner capitulation.

Edwards uses bitcoin's hash rate to find significant price bottoms based on miner capitulation. Historically, the indicator did not light up more than a single time per year on average. All CFDs (stocks, indexes, futures) and Forex prices aren't provided by exchanges but rather by market makers, and so prices may not be accurate and may vary from the actual selling price, meaning prices are indicative and not befitting trading purposes.

The Hash Ribbon indicator possibly reemerged as Bitcoin went through a record high difficulty adjustment.

Veteran trader Peter Brandt believes that the new altcoin season probably will start in the longer term and that he predicted that altcoins will likely outperform (BTC) during this next run. The first digital coin is influenced by global sentiments and may be vulnerable to further losses if the U.S. stock market drops from the recent highs following the bearish momentum during the Asian session. Some traders say that a short-term pullback is imminent.

Nevertheless, analysts are optimistic about the Hash Ribbon indicator and its implications due to its historical accuracy. Going off my system still gets me behind the moves eventually.

The sample size of the indicator has been criticized in the past. Because the indicator tends to emerge once a year, there is a possibility that it merely follows the long-term price trend of BTC. An argument can be made that the indicator merely treads the upward movement of BTC over time.

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