So it's that time again, another
Hash Ribbons buy signal, the third in as many years. For more info on this indicator click
here.
The capitulation a month prior at $30.3K didn't amount to much price or miner capitulation, with only around -3% price correction prior to the buy signal last week at $29.4K.
Recent buy signals:January 2023: $20,882 ✅
August 2021 $43,284 ❌
December 2020: $19,378 ✅
July 2020: $9,306 ✅
April 2020: $7,704 ✅
(Ticks and crosses represent good/bad signals)My interpretation:As you can see, it's far from as reliable as it has been in the past with signals in August 2021 as well as December 2019 that although at first saw price appreciate by around 50%, it was followed by a significant drop below the buy signal price of around 40-60%. Nonetheless this is the 14th buy signal on the weekly time-frame in the past 12 years, or otherwise the 11th in the same period on the monthly time-frame.
However, it is has been the case
in all previous 13 buy signals that price has either initially increased by 50%+, or otherwise consolidated sideways prior to considerably higher increase (3-9x in recent years).
So despite the bullish price momentum subsiding, and price threatening to re-test the lows again, there remains some fundamentally strong aspects regarding the network atm. It's also worth noting that this signal doesn't often lead to
immediate bullish price action. More often than not there are still weeks/months left of consolidation prior to a move to the upside, as this is usually a very "early" indicator of bullishness.
Previous Hash Ribbons topics:Bitcoin Hash Ribbons Buy Signal 19/08 (2022)
Bitcoin Hash Ribbons Capitulation Alert! (2022)
Bitcoin Hash Ribbon Update - Capitulation Again? (2022)
Hash Ribbons Buy Signals 2016-2020 Extrapolation (2020)
Hash Ribbons Indicator confirms 10th buy signal in 9 years @ $7245 (2019)
