Bitcoin Hash Ribbons Indicating Prime Buying Opportunity, Analyst Says

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Bitcoin (BTC) remains range-bound in the mid-$100,000s, showing no clear directional bias. However, the Hash Ribbons indicator is now flashing a fresh buy signal, suggesting that the top cryptocurrency may be gearing up for its next upward move. Bitcoin Hash Ribbons Flash Buy Signal

According to a recent CryptoQuant Quicktake post by contributor Darkfost , Bitcoin’s Hash Ribbons are signalling a potential prime buying opportunity for the leading digital asset. This signal coincides with Bitcoin’s hashrate reaching new all-time highs (ATH). Related Reading Bitcoin Mining Giant Abandons Full-Hold Strategy, Unloads $40M In Crypto 4 weeks ago

For the uninitiated, Bitcoin Hash Ribbons is an on-chain indicator that analyzes miner stress by comparing the 30-day and 60-day moving averages of Bitcoin’s hashrate. When the short-term average crosses above the long-term average after a period of decline, it signals that miner capitulation is ending – often marking a strong long-term buying opportunity.

Such signals can emerge when mining becomes unprofitable for certain miners, forcing them to sell their BTC holdings to stay afloat. These sell-offs may temporarily pressure the price, but historically they have created attractive long-term buying opportunities.

In their analysis, Darkfost notes that while the current signal is bullish from a long-term perspective, it could lead to a short-term pullback in BTC price. However, he emphasizes that any dip should be viewed as a chance to accumulate.

Darkfost also pointed out that the Hash Ribbons indicator has historically been reliable, with the exception of 2021 during the China mining ban. They shared the following chart illustrating how the indicator is currently showing a strong buy signal. Source: CryptoQuant Is BTC Headed For A Crash?

While the Hash Ribbons suggest a favorable long-term setup, some analysts warn that the short-term correction could be deeper than expected. For instance, crypto analyst Xanrox used the Fibonacci levels to forecastthat BTC may tumble as low as $98,000. Related Reading Bitcoin Warning Signs? Long-Term Holders Exit While Retail Buyers Rush In 2 days ago

Similarly, analyst Jelle notedthat Bitcoin may face “one last speed bump” before launching a major rally to $140,000. Meanwhile, more pessimistic voices continue to warn of a dramatic crash, with some speculating that BTC could fall below $10,000 – a view seen as increasingly unlikely by most market participants.

Despite the varying predictions, fresh on-chain data points to a healthy BTC market in the near to medium term. For instance, CryptoQuant contributor Amr Taha recently highlightedthat the derivatives market has undergone a reset, with funding rates stabilizing around neutral levels.

Similarly, Fundstrat’s Head of Research, Tom Lee foreseesBTC surging to as high as $250,000 by the end of the year. At press time, BTC trades at $105,367, up 0.5% in the past 24 hours. BTC trades at $105,367 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant and TradingView.com