An important fundamental health signal of the Bitcoin network just crossed into “capitulation” territory, which in the past was associated with downside risk. However, the tool’s creator says that it wasn’t designed to give sell signals, and shouldn’t be interpreted that way.
But because of how profitable its been used as a buy signal over the cryptocurrency’s history, it is difficult to ignore a sudden anomaly in the asset’s market cycle that has never in the past appeared. So what exactly is going on and why did this rare signal just trigger?
What Gives? Bitcoin Hash Ribbons Signal Miner Capitulation As Bull Market Begins
There is no other asset on the face of the planet like Bitcoin. Altcoins created in its honor, and even hard forks that as closely mimic the first ever cryptocurrency as possible can’t come close to its market share dominance and potential.
Cryptocurrencies in general, share very few similarities with traditional assets like stocks. Due to this, the fundamental analysis methods typically used to forecast company share pricing are useless.
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Instead, custom tools have been designed by experts like Charles Edwards that closely monitor specific Bitcoin network health metrics, such as hash rate, and more. Edwards also created the hash ribbons, which in the past have acted as the ultimate buy signal