Bitcoin (BTC) on-Chain Analysis: Hash Ribbon Shows Miner Capitulation

Be[in]Crypto takes a look at Bitcoin (BTC) on-chain indicators that relate to miners, more specifically the difficulty ribbon compression and hash ribbon.

BTC difficulty

The Bitcoin mining difficulty is the estimated number of hashes that is required to mine a block. 

The difficulty has been increasing rapidly since Aug and reached a new all-time high on May 23. 

Despite the ongoing market correction, the difficulty is still close to its all-time high levels.

Difficulty ribbon compression 

The difficulty ribbon is an on-chain indicator that uses moving averages (MA) of Bitcoin mining difficulty. The difficulty ribbon compression adds a standard deviation to this indicator. Historically, values between 0.01 and 0.05 (highlighted in green) have indicated bottoms.

BTC crossed below the 0.05 threshold in the beginning of May and is currently at 0.045. While the low is inside the bottom area, previous bottoms have usually been reached closer to 0.02. 

More specifically, the 2015 bottom was reached at 0.024, the 2018 bottom was reached at 0.019 and the 2020 one at 0.020.

As a result, BTC has more room to fall according to the difficulty ribbon compression.

Hash ribbon

Unlike the BTC difficulty, which is calculated every two weeks, the hash rate is calculated every day. 

The has ribbon indicator shows if miners have capitulated by using the hash rate. Miners capitulate when their mining costs are higher than the rewards.  

In the chart, this is shown visually when the 30-day moving average (MA) crosses below the 60-day (blue). Afterwards, this created a light red area, which turns to dark red when there is a bullish cross. 

Historically, such crosses have preceded significant upward movements.

A closer look at the movement shows that a bearish cross occurred on June 7. 

So, if previous history is followed, miner capitulation is already starting to occur and a BTC bottom will follow soon.


For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here

The post Bitcoin (BTC) on-Chain Analysis: Hash Ribbon Shows Miner Capitulation appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

Rad Rabbits NFT Launches Rainbow Rabbits for Pride Month

As Pride Month comes to end this June, Rad Rabbits is pleased to announce its latest NFT collection will be dedicated to celebrating Pride. The unique and…

Chainlink Market Cap Sank More than $1.7 Billion in May

Chainlink (LINK) was among the cryptocurrencies that lost more than $1 billion in value due to the negative market sentiment that engulfed the decentralized finance (DeFi) space…

Mercado Pago Extends Its Cryptocurrency Services in Brazil

Mercado Pago, the digital payments company related to Mercadolibre, has recently announced the extension of the crypto services that it provides to users in Brazil. The company…

Bitcoin Miners Bail out as Energy Prices Soar and Profitability Plunges

More and more Bitcoin miners are throwing in the towel amid soaring energy prices and plunging profitability. This has had a knock-on effect on hash rates and…

Cantina Royale Taps Elrond Apes to Boost In-game Cross Chain NFT Collections

Cantina Royale and Elrond Apes are teaming up to enhance the appeal of the upcoming top-down tactical arcade shooter with play-to-earn mechanics. Elrond Apes NFTs will be…

Bitcoin (BTC) Attempts to Create Higher Low Above $20,000

Bitcoin (BTC) is attempting to find support and create a higher low after a breakout from a short-term resistance line. BTC has been decreasing underneath a descending…