BITCOIN, Massive HASH-RIBBON Buy Signal Incoming The NEXT TIMES!

3 июл. 2021 г.

Hello,

Welcome to this analysis about Bitcoin and its Hash-Ribbon-Structure I recently detected, which is playing an important role in the current movements especially with upcoming price-actions this can lead to a new historical has-ribbon-signal as it was already similarly seen 15 times in Bitcoins past historical price-developments. As Bitcoin in recent times showed up with heavy declines in the structure the regulatory landscape altered and some countries such as China decided to shut down mining completely and ban Bitcoin mining, while there are other countries and governments who are massively regulating exchanges. In this analysis, I will examine the aspect of decreased mining activity resulting out of such measures that are actively affecting the hash rate and the mining capitulation which is the underlying factor in the hash-ribbon indicator I am presenting today.

In technical analysis the best thing is to combine different technical aspects and come up with a final conclusion besides that it is always extremely necessary to keep a clear head and do not take an idealistic view on the market as it is happening oftentimes, this just plays into the hands of the smart money operators and market makers pushing the prices up and down and taking advantage of these gaps in the developments and trapping traders in the market. Therefore, as a sophisticated trader, it is necessary to think in both directions to wage the proper determinations and come up with a final decision rather than over-speculating the market into a one-sighted approach.

The Hash-Ribbon-Indicator:
The hash-ribbon-indicator seen in my charts consists of 3 important technical elements. The first is the hash rate, the hash rate is the amount of computing power which miners are putting into the Bitcoin network to mine Bitcoins. When the hash rate is falling this means that fewer miners are mining Bitcoin within the Bitcoin network and therefore the competition to mine Bitcoins is falling and in the hash-ribbon-indicator, this hash-rate is represented by the different dots (First graphic below). The second element is the hash-ribbons moving-averages consisting of the 30-day hash-ribbon moving-average marked in green and the 60-day hash-ribbon moving-average marked in grey, when the 30-day crosses below the 60-day this means miner capitulation settled and the miners mining Bitcoin decreases as well as the hash-rate decreases while it is the reverse when it crosses above. The third element is the decisive one in the whole structure as it actually marks the final buy-signal with the blue dot, this is when the 10-MA marked in my chart in green crosses above the 20-MA marked in my chart in red which showed the final bulls-signal already in past price-actions combined with the increased mining activity, in this case, it is important that the 10-MA holds above the 20-MA and do not forms a cross-back. In the graphics below I show these elements in action and how they are defined.

Hash-Ribbon Development-Phases Explained:

In this first graphic, you can see the already mentioned elements in the hash-ribbon-indicator explained. With the different stages in the declining to rising hash rate reaching from the actual miner capitulation to the final increasing in miner activity till the buy signal is developed marked with the dots in a different color. What is important is also the stages in the hash-ribbons moving averages as well as the price-action moving averages.

One Example With The Stages-Examinations Out Of The 15 Historical Hash-Ribbon-Signals:

In this second graphic, you can see how the hash-ribbon signal exactly indicated the ongoing expansion phase. Beginning in May 2020 the miners capitulated resulting in the decreasing hash rate and the incoming grey dot, after that, the hash rate declined further till mining activity increased again, and on the 23rd June reached a level in which the mining activity moved into normal levels again. This held till the final buy signal emerged at 12 July 2020 with the 10-MA finally crossing above the 20-MA and holding above it with no cross-back.

The Present Ongoing Hash-Ribbon-Signal-Phase With The Important Structures To Consider Currently:

As seen in the third graphic now Bitcoin is in the next historical hash-ribbon-signal-phase and what is significant in this phase is that the mining activity severely recovered in the past times till the next declines in mining activity followed up, this can be contributed to the fact that China shutdown on Bitcoin mining and that in this case, the closing of mining activity came in waves similar to the other regulatory measurements in other countries as well affecting the Bitcoin mining contribution. Besides that, the several continued increases in mining activity also indicate an increased demand for mining during the volatility. Now Bitcoin is still in the miner capitulation phase with a declining hash rate as it is shown in my chart, this can possibly change in the upcoming times when mining activity increases again as the miners that left China building up their mining activity in more supportive places the mining activity and therefore hash rate can rise again similarly as it was in the past with this major hash-ribbon-signal.

What We Should Consider Now:
In past price-actions it was always often seen that the hash rate and mining difficulty decreased moving into the hash-ribbon-signal-phase as explained, this was also the case with the declines seen in the last times and especially fueled by countries such as China shutting down on Bitcoin mining. The miners that leaving China now will settle into other countries where the mining activity will increase again, it was already reported that many moved into the US in states such as texas with a supportive Bitcoin Mining Policy. Taking this into the consideration and especially with the other technical factors I already mentioned in the previous analysis it is likely that mining activity will increase again in the next times pointing to the green dot in the hash-ribbons indicator. Furthermore, Bitcoin on the weekly is developing this main declining bearish momentum which is an increased reversal sign. These factors can be fuel for the next hash-ribbon signal.

In this manner, thank you for watching my analysis about BITCOIN and the meaningful importance of its Hash-Ribbon-Indicator-Structure, have a great day as well as the weekend, will be great when you support it with a like and follow or comment, great contentment for everybody supporting, all the best!

Information provided is only educational and should not be used to take action in the markets.