Fast Take
The Hash Ribbon, a market indicator outlined by Glassnode, operates on the idea that Bitcoin tends to backside out when miners capitulate, which occurs when the price of mining Bitcoin exceeds the potential return.
The Hash Ribbon traditionally indicators the tip of the miner capitulation part when the 30-day transferring common (MA) of the hash fee surpasses the 60-day MA, remodeling from mild pink to darkish pink areas on the under chart. This metric, coupled with a shift in value momentum from unfavourable to constructive, has traditionally indicated promising shopping for alternatives, as represented by the transition from darkish pink to white.
For the primary time for the reason that FTX collapse, the ribbon has inverted, marked by an 8% drop within the hash fee inside a span of some days. Apparently, patterns of miner capitulation have been recurrent each summer season, doubtlessly resulting from a better electrical energy value throughout these months.
Traditionally, situations of miner capitulation had been seen in June 2020, Could 2021, June 2022, and most not too long ago in July 2023. On common, these capitulation intervals span one to 2 months.
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