• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

The Signal That Preceded Bitcoin’s Drop to $3k in 2018 Is About to Flash Again

Nick Chong by Nick Chong
2 years ago
in Bitcoin
Reading Time: 2 mins read
Advertisement

Just a week ago, Bitcoin was trading just dollars shy from $10,000. But after rumors (since disproven) spread about Satoshi Nakamoto selling his stash of BTC, the cryptocurrency has collapsed to $8,700.

Some have deemed this move a “healthy” retracement, but a key indicator suggests that Bitcoin bulls have further losses ahead of themselves.

Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His Bitcoin, China ‘Bans’ Cryptocurrency Mining

Bitcoin Is About to Print a Hash Ribbons Crossover

Due to the block reward halving that transpired two weeks ago, the revenue that Bitcoin miners earn was effectively cut in half overnight.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Miners operating with tight margins due to high electricity costs and older mining machines have been forced to turn off their machines in the wake of this halving.

As a result, Bitcoin’s hash rate — the amount of computational power securing the network — has fallen, dipping over 20% from the all-time highs.

It’s a decline that is about to be made apparent by the Hash Ribbons — a custom indicator that tracks crossovers in two moving averages of the hash rate. The indicator is now on the verge of crossing over to the downside — a sign seen just weeks before BTC crashed from $6,000 to $3,150 at the end of the 2018 bear market.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

The Hash Ribbons crossing over to the downside, analysts say, indicates the existence of “miner capitulation.” The analysts say that during said capitulation, some Bitcoin miners are unprofitable, and are thus forced to sell their BTC to keep their operations online or out of debt.

Chart of BTC's price over the past two years from TradingView.com. The indicator seen at the bottom is the Hash Ribbons, two moving averages of the hash rate of the Bitcoin network.
Chart of BTC’s price over the past two years from TradingView.com. The indicator seen at the bottom is the Hash Ribbons, two moving averages of the hash rate of the Bitcoin network.

Adding to the bearish outlook is technical analysis.

As reported by NewsBTC previously, one trader noted that Bitcoin’s weekly chart printed a textbook “tweezers” top, marked by two candles with the same body length in succession. Add a rejection at a key resistance level, $10,000, and the cryptocurrency is purportedly primed to move lower.

Bullish Long-Term Ramifications

Although many may be running for the doors due to the imminence of this on-chain signal, it has long-term bullish ramifications for the Bitcoin market.

Digital asset analyst Charles Edwards found that whenever the Hash Ribbons recovers — when the short-term moving average crosses above the long-term moving average — has always been a good time to enter the crypto market. He wrote in December 2019:

“Hash Ribbons Buy confirmed.  This is just the 10th time these conditions have been met for BTC. All other occasions saw an average gain-to-cycle-peak of +5000%.”

Table of Hash Ribbon data from crypto asset analyst and investor Charles Edwards.
Related Reading: The Chinese Yuan is Falling Once Again — and That’s Key for the Bitcoin Bull Case
Featured Image from Shutterstock
Tags: bitcoin pricebtcusdBTCUSDThash ribbonstechnical analysisxbtusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin

Can This Bitcoin Ratio Have Hints For A Bottom?

2 days ago
bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

2 days ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

3 days ago
bitcoin bear

New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

3 days ago
Bitcoin

Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

3 days ago
Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

3 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Web3 Delight Lagos – Breaking barriers to pave the way for the digital future

July 4, 2022

LBank Exchange Will List DOTORI (DTR) on July 4, 2022

July 4, 2022

WorldPF (WDPF) Is Now Available for Trading on LBank Exchange

July 4, 2022

MetaBitcoin (MBTC) attracts investment from Dubai’s first royal crypto fund, Alawad Fund

July 4, 2022

MicroNFT (MNT) Is Now Available for Trading on LBank Exchange

July 4, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.