- Several investors are worried regarding the issues, as the custom indicator that tracks the movement in hash rates
- Hash Ribbons printed a “Buy”, it would be a win for investors, as per the historical analysis of indicators
In late October, we observed that the hash rate of Bitcoin dodged strongly. If we consider several metrics, it is found that the computational power to mine Bitcoin had fallen to around 90 exahashes per second from its highest 170 exahashes per second. However, with the natural increase in block times, the transactions of Bitcoin became slow.
Concerns Generated Among the Investors
Several investors are worried regarding the issues, as the custom indicator that tracks the movement in hash rates, Hash Ribbons, had printed a “miner’s capitulation” signal for the first time since May’s halving. However, an indication that appears after halving or in the bear market has no right to validate once again, as the price of Bitcoin is inclining towards $15,000. According to Charles Edwards, the creator of Hash Ribbons, a small doubtful situation still appears.
Will Hash Ribbons Print a “Buy”?
As per the Edwards observation, it seems like soon the Hash Ribbons will print a “Buy” signal within this month only. According to a recent tweet of Charles Edwards, we observed that, as the Chinese miners are migrating due to the rainy season and hydroelectricity is getting cheaper, from the local lows, the Bitcoin hash rate has bounced to around 60% or 70%.
However, if the Hash Ribbons printed a “Buy”, it would be a win for investors, as per the historical analysis of indicators, as in summer it was last when the indicators printed a “Buy” before the rally to today’s $16,000 from $8,000 of Bitcoin. The analysis of Edwards also pointed out, at the bottom of all macro bear markets, as the $3,100 lows of 2018, the indicators have printed “Buy”. Now the concern is whether, as per the history rhyme, will Hash Ribbons “Buy” lead the way towards a new all-time-high or not.
The Interest of Institutional Players in Bitcoin
According to the on-chain and market data report of CryptoSlate, it is observed that several institutional players are progressively bidding Bitcoins. In contrast, on the other side, the holders are getting hesitant to sell Bitcoins. May the issue could be marked as a sell-side liquidity crisis.
On Monday, Druckenmiller, world’s foremost asset manager, announced that, as Bitcoin is thinner, more illiquid, and has several betas, its bet will work better if the gold chance works, and so he also is holding Bitcoins. However, several analysts of the cryptosphere assume that the entrance of Druckenmiller into crypto space can catalyze several other institutional players to purchase Bitcoin.