Bitcoin has certainly done that executed on the bullish side for the past three weeks. Many investors are now convinced of the full return on investment bullish price actions, and several technical indicators support this rise in optimism. One such indicator is the hash ribbon, which highlights positive price momentum for Bitcoin.
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The hash ribbon provides a compelling view of on-chain activity by tracking the behavior of miners, which are known to have a direct impact on the cryptocurrency’s price.
Price momentum turns positive
Crypto analyst Ali Martinez marked an intriguing phenomenon with the hashlint indicator on social media platform
The hash ribbon indicator analyzes Bitcoin’s hash rate using the 30-day and 60-day moving averages to measure miner activity and network health. When the 30-day moving average falls below the 60-day average, it signals miner capitulation; when it resurfaces, it signals a recovery and possible bullish price action.
As the price chart below shows, the latest capitulation of miners began on June 17, after the 30-day moving average fell below the 60-day moving average. Recent market dynamics have seen the 30-day moving average rise again, indicating that miners now have a bullish outlook.
Bitcoin miners have faced challenges since the April 2024 halving, causing their daily earnings to decline of an average from $70 million before the halving to $30 million after the halving. This drop in revenue forced many miners to sell their BTC shares to cover operational costs. However, recent data suggests that miners are capitulating may be nearing its endas increased activity on the Bitcoin network pushed miners’ daily earnings back above $40 million.
Positive Bitcoin Reactions Hit Highs in 16 Months
Still in the spirit of bullishness, crypto-on-chain intelligence platform Santiment noted that Bitcoin bullishness among market participants is now at its peak. Santiment data shows that the ratio of positive to negative comments about BTC on social media has risen to the highest level since March 2023, as investors become increasingly optimistic about a new all-time high.
This increase in positive sentiment can mainly be attributed to the positive mentions of Bitcoin at the recently concluded Bitcoin Conference. During the conference, Republican presidential candidate Robert F. Kennedy Jr. spoke. reiterated his optimistic attitude position on Bitcoin.
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Furthermore, former president and current Republican candidate Donald Trump changed his previous position on Bitcoin and expressed his support for the cryptocurrency. Trump too promised to shoot SEC Chairman Gary Gensler, who is known for his very strict approach to Bitcoin and other cryptocurrencies, if elected president.
The combination of political support and positive sentiment on social media led Bitcoin to reach a new all-time high in August. At the time of writing, Bitcoin is trading at $67,500.
Featured image from Vecteezy, chart from TradingView
