Bitcoin has definitely performed on the bullish side for the past three weeks. Many investors at the moment are convinced of the total return of bullish price actions, and various technical indicators support this surge in optimism. One such indicator is the hash ribbon, which highlights a positive price momentum for Bitcoin.
Related Reading
The hash ribbon provides a compelling view of on-chain activity by tracking the behavior of miners, who’re known to have a direct influence on the cryptocurrency’s price.
Price Momentum Flips Positive
Crypto analyst Ali Martinez highlighted an intriguing phenomenon with the hash ribbon indicator on social media platform X. As noted by the analyst, the hash ribbon is signaling the tip of miner capitulation, which suggests that the BTC price momentum has shifted from negative to positive.
The hash ribbon indicator analyzes Bitcoin’s hash rate using the 30-day and 60-day moving averages to gauge miner activity and network health. When the 30-day moving average drops below the 60-day, it indicates miner capitulation; when it crosses back above, it signals recovery and potential bullish price motion.
As shown by the value chart below, the last miner capitulation began on June 17 after the 30-day moving average crossed below the 60-day moving average. Recent market dynamics have seen the 30-day moving average crossing back up, suggesting that miners at the moment are at a bullish outlook.
Bitcoin miners have faced challenges for the reason that April 2024 halving, which reduced their day by day revenue from a mean of $70 million pre-halving to $30 million post-halving. This revenue drop forced many miners to sell their BTC holdings to cover operational costs. Nevertheless, recent data indicates that miner capitulation could also be nearing its end, as increased activity on the Bitcoin network pushed day by day miner revenue back above $40 million.
Bitcoin is now trading at $67,492. Chart: TradingView
Positive Bitcoin Comments Reach Highest Level In 16 Months
Still within the spirit of bullishness, crypto on-chain intelligence platform Santiment noted Bitcoin’s bullishness amongst market participants is now at its peak. Santiment’s data reveals that the ratio of positive versus negative comments about BTC on social media has surged to its highest level since March 2023 as investors change into increasingly optimistic a few latest all-time high.
This surge in positive sentiment may be attributed mainly to the favorable mentions of Bitcoin on the recently concluded Bitcoin conference. Throughout the conference, Republican presidential candidate Robert F. Kennedy Jr. reiterated his bullish stance on Bitcoin.
Related Reading
Moreover, former president and current Republican nominee Donald Trump altered his previous stance on Bitcoin and expressed support for the cryptocurrency. Trump also promised to fireplace SEC Chairman Gary Gensler, who is understood for his very strict approach towards Bitcoin and other cryptocurrencies, if elected president.
The mix of political support and positive sentiment on social media has fueled mentions of Bitcoin reaching a latest all-time high in August. On the time of writing, Bitcoin is trading at $67,500.
Featured image from Vecteezy, chart from TradingView