Thomas Daniels
Bitcoin may be poised for a new surge, according to analysts at the on-chain analytics platform CryptoQuant. The recent signal from the widely-followed Hash Ribbons indicator suggests that miner capitulation has ended, potentially setting the stage for higher prices.
This bullish outlook emerges as Bitcoin retests the $59,000 level, despite the cryptocurrency facing resistance at $62,400 and retreating below $60,000 over the past week.
Hash Rate Reaches Record High
While bearish pressures persist, CryptoQuant’s latest analysis highlights a positive price scenario for Bitcoin, driven by the Hash Ribbons indicator. This tool, which traders use to identify “periods of stress in the mining market,” has recently signaled a potential bottom. The indicator analyzes the 30 and 60-day moving averages of Bitcoin’s hash rate, with the current surge pushing the network hash rate to an all-time high of 638 exahashes per second.
“Miners are beginning to use more efficient equipment, turning their machines back on and becoming less likely to sell,” CryptoQuant noted, suggesting reduced selling pressure from miners.
Hash Ribbons Often Precede Price Rally
Following Bitcoin’s fourth halving in April 2024, which reduced the block reward from 6.25 BTC to 3.125 BTC, the cryptocurrency reached an all-time high above $73,000. However, subsequent miner capitulation and other negative factors drove prices lower.
CryptoQuant points to the latest Hash Ribbons signal—the first since the halving—as a “healthy signal” for Bitcoin. While not intended to pinpoint the exact price bottom, the indicator often precedes higher prices by indicating diminished selling pressure from miners.
