Bitcoin recently retested $59,000, facing resistance at $62,400, and has since dipped below $60,000.
Analysts working for the on-chain analytics platform CryptoQuant report that there is a possibility that Bitcoin is about to experience a new rise.
It appears that miners’ capitulation has come to an end, as indicated by the recent signal from the widely regarded Hash Ribbons indicator, which may have the potential to set the stage for higher prices.
This bullish perspective comes when BTC retests the $59,000 level, despite the fact that the cryptocurrency has encountered resistance at $62,400 and has retreated below $60,000 over the course of the past week.
The Hash Ribbons indicator leads a favourable pricing situation for Bitcoin, despite the presence of bearish pressures. In recent times, this instrument, which traders use to identify “periods of stress in the mining market,” has indicated that a potential bottom may be approaching.
As a result of the current rise, the network hash rate has reached an all-time high of 638 exahashes per second, according to the indicator, which analyzes Bitcoin’s 30 and 60-day moving averages.
As a result of the fourth halving of Bitcoin, which took place in April 2024 and dropped the block reward from 6.25 BTC to 3.125 BTC, the cryptocurrency reached an all-time high that was greater than $73,000.
The subsequent capitulation of miners, as well as other unfavorable events, contributed to the decline in prices. The most recent Hash Ribbons signal, which is the first signal since the halving, is a “healthy signal” for Bitcoin.
CryptoQuant cites this signal as evidence. Despite the indicator’s inability to pinpoint the exact price bottom, it often signals the start of rising prices by indicating a decrease in miners’ pressure to sell their holdings.
