In an encouraging development for Bitcoin investors, the hash ribbons indicator, a notable market indicator, has flashed a potential buy signal, which has triggered optimism around the largest cryptocurrency asset. As a result, TOBTC, a trading platform and analyst has predicted that Bitcoin could be preparing to witness an explosive rally, due to the significance of the indicator.
Bitcoin Hash Ribbons Indicator Finally Signal A Buy In 2024
It is worth noting that Bitcoin hash ribbons show the hash rate and price recovery following miner capitulations, which have historically produced powerful long-term buy signals. This indicator, which uses moving averages of BTC’s hash rate to pinpoint the best times to buy has a track record of accurately predicting significant price gains, prompting the analyst’s bold prediction.
According to the platform, Bitcoin is poised to undergo a huge rally as the current hash ribbon indicator buy signal marks the first time in 2024, suggesting the end of miner capitulation. This signal was noticed for the first time since mid-May, suggesting that the price of Bitcoin is currently in the long-term buy area.
The analyst noted that the indicator, which monitors the hashrate’s 30-day and 60-day moving averages, implies that a significant price upside for BTC may occur soon. With the hash ribbons currently displaying a buy signal, it appears the 30-day moving average has risen above the 60-day moving, which is historically considered a bullish sign for BTC’s price.
TOBTC further pointed out that following a rebound to the $68,000 level, BTC’s price action is now erratic, despite worries over Mt. Gox payouts and the acceptance of the US Sopt Ethereum Exchange-Traded Funds (ETFs). Mt. Gox has finally concluded its repayments proceedings, as Kraken, responsible for the distribution of funds to the creditors successfully carried out the operation on Tuesday.
“Kraken has successfully distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate back to creditors,” David Ripley, the Chief Executive Officer (CEO) of Kraken stated. He then extended his commendation toward the Mt. Gox trustee for choosing Kraken over a decade ago as the sole exchange to distribute the funds to creditors.
Mt. Gox Creditors Choose To Hold BTC Rather Than Sell
Prior to the Mt. Gox payouts, there was quite a speculation within the crypto industry regarding the negative impact of the proceedings on BTC’s price. This is due to the notion that once creditors are paid, the majority of them will be looking to sell their BTC, which would lead to a notable price decline for the crypto asset. However, after the payouts were finally made on Tuesday, it was observed that the users were actually choosing to hold their BTC rather than dumping them.
Data from leading on-chain analytics provider, CryptoQuant, shows a major rise in BTC withdrawals from Kraken following the onset of payments to impacted Mt.Gox clients. According to the platform, this is a good sign since the users are transferring their assets from the exchange to cold wallets and are not selling.
Featured image from iStock, chart from Tradingview.com
