What Are Hash Ribbons?
The Bitcoin hash ribbons indicator is used to capture and identify bitcoin bottoms in order to be able to buy at ideal times.
Crypto money investors aim to maximize their profits by buying at the lowest price level that may occur while making their investments and selling at the highest level. For this reason, they want to bring together many data and provide risk management while making their analysis. Hash Ribbons offers us an opportunity to do Bitcoin price analysis regarding bottom buy positions among the analyzes to be made.
Before asking the question “What are Hash Ribbons?”, what is the hash rate? It is useful to know the answer to the question. The hash rate is calculated based on the number of blocks mined by miners. This rate gives us the speed at which a Bitcoin network transaction can take place. Rising odds mean that miners’ ability to mine on the next block increases. Of course, as a result of this, miners begin to withdraw their crypto assets from the miner’s pool and sell them.
This situation, in which Bitcoin miners do not cover the costs of their transactions in the market after a certain point and do not make a profit, is called miner capitulation. The decrease in earnings made by Bitcoin miners leads them to sell the Bitcoins they hold. Bitcoin miners tend to sell the cryptocurrencies they hold when Bitcoin mining requires more cost. Such a situation leads to a big impact on the market and a big selling effect.
Hash Ribbons are used as an analysis tool to capture the bottom buying levels that may occur in the crypto money market. It is an indicator used to detect Bitcoin bottom levels and to catch the opportunity to buy from these levels in order to buy crypto coins in cases where price decreases are desired to be turned into opportunities. The Hash Ribbons indicator appears in theory when Bitcoin miners sell the Bitcoins they hold, and the market tends to see the bottom. This trend offers investors the opportunity to buy from the bottom.
Hash Ribbon works with two simple moving analysis methods, one 30-day moving average and one 60-day moving average. Like the SMA (simple moving average), it is also used to determine miner capitulation and possible bitcoin bottoms. When the 30-day SMA of the Bitcoin hash rate rises above the 60-day SMA, this tends to signal the end of miner capitulation. When we look at the past to the present, the purchases made at these points have been very profitable.