Bitcoin remains bullish thanks to three fundamental factors as we are reading today, right when Bitcoin definitely experienced once again a fall under $9,000, which has the consequence of touching the lows that were not experienced more than 7 days ago. An action that resulted in a liquidation of longs that had the worth in the millions, destroying the hopes of the bulls for the long-expected upside. In our Bitcoin latest news, we take a closer look at the analysis.
But, a multitude of analysts is still basically light-spirited, basing their optimism on multiple trends that are seen as an indicators as Bitcoin remains bullish after the drop below $9000. The hash rate of Bitcoin had been through a deep after the block reward halving in May. The halving had the consequence of a 50% decrease in the revenue of the crypto miners. So many of them on the margin were forced out of business. Preston Pyshthe famous finance podcaster wrote in the wake of the event:
“During the 2016 halving, the price went sideways for 9 days and then had a 28% drop, and it took 100 days to get back to the halving price. Mentally prepare yourself for the efficiency cleansing and difficulty adjustment as the protocol prepares all passengers for launch.”
Hash Ribbons Buy confirmed.
This is just the 10th time these conditions have been met for #Bitcoin.
It is highly likely we never see $BTC under $6000 ever again.
All other occasions saw an average gain-to-cycle-peak of +5000%.
Now is the period to Buy Bitcoin and never sell. pic.twitter.com/hSH9BtRhsj
— Charles Edwards (@caprioleio) December 28, 2019
But as a result of the summer rainy season in China and certain new mining hardware, the miners have succeeded in recovering in a short time. CoinMetrics had a report in the beginning of this month that the hash rate of the Bitcoin network is at this time on the levels in which it has been before the halving. The Hash Ribbons is the product of this, an indicator that gets its signals from the average movements of the has rate, from printing a positive signal. A well-known digital asset manager, Charles Edwards, wrote on the hash rate-based indicator:
“Hash Rate “Recovery” looks like it may occur next weekend… The Hash Ribbon “Buy” signal also requires price momentum to improve from here, so could take a bit longer than a week.”
1/ A thread showing 12 charts that illustrate #Bitcoin investor confidence and increased HODLing behavior.
Spoiler: This is long-term extremely bullish.
Let's dig in 👇
— Rafael Schultze-Kraft (@n3ocortex) June 26, 2020
The Hash Ribbons are significant because they have in the past flipped bullish prior bull rallies. From the devaluation of the U.S. dollar against asset classes and other foreign currencies, Bitcoin could experience certain benefits. This is in accordance with the writings of the CEO of Koyfin and an ex Goldman Sachs vice president, Rob Krugman. He wrote in a recent article:
“The Fed’s commitment to prolonged use of QE may represent a major turning point for the US Dollar. A break below [a close-by level] would confirm a major decline for the USD with implications across asset classes… USD weakness may be a catalyst for Bitcoin breaking out to new highs.”
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