Bitcoin hash rate surpasses another ATH, Hash Ribbon indicates miner capitulation is over Bitcoin hash rate surpasses another ATH, Hash Ribbon indicates miner capitulation is over

Bitcoin hash rate surpasses another ATH, Hash Ribbon indicates miner capitulation is over

On Jan. 20, Bitcoin (BTC) hash rate surpassed another all-time high (ATH) — remarkable to see in a bear market.

Definition

Hash rate is defined as the average estimated number of hashes per second produced by the miners in the network.

The Hash Ribbon indicator shows that the worst of the miner capitulation is over when the 30-day moving average (MA) of the hash rate crosses above the 60-day MA (switch from light red to dark red areas). Times when this occurs and the price momentum switches from negative to positive have shown to be good buying opportunities (switch from dark red to white).

Quick Take

  • On Jan. 20, Bitcoin (BTC) hash rate surpassed another all-time high (ATH), remarkable to see in a bear market.
  • In the past few weeks, BTC hash rate has experienced two isolated 20% drops in hash rate and has managed to recover.
  • Hash rate has grown every day in 2023 so far.
  • The Hash Ribbon indicator has diverged and signals the end of miner capitulation is a market indicator that assumes that BTC tends to reach a bottom when miners capitulate,
Hash Ribbon: (Source: Glassnode)
Hash Ribbon: (Source: Glassnode)
Hash Rate adjustment: (Source: Glassnode)
Hash Rate adjustment: (Source: Glassnode)