If you are following our Bitcoin news now, you probably know that the situation around the most dominant coin is stagnant and there is no price action. Still, the flagship cryptocurrency is above $7,000 for a couple of days now which makes it stable in the wake of the new year. However, all of this could be changing soon as one key BTC signal flashed, indicating that a potential bullish run is on the way.
The term linked to this scenario is “miner capitulation” which is actually Bitcoin’s drop which began earlier this year, causing the hash rate of the underlying network to flatline. This trend led the Hash Ribbons, a key BTC signal which is tracking moving averages (MAs) of Bitcoin’s hash rate to see a bearish crossover which resulted in the “miner capitulation.”
The previous bearish crossover in the Hash Ribbons was seen just before the now-infamous crash from $6,000 to $3,000 in late 2018. The key BTC signal has been triggered now as the latest cryptocurrencies news show – and BTC could this time jump higher.
The Hash Ribbons had not yet signaled a “buy” but according to the digital asset manager Charles Edwards who popularized the signal and talked about Bitcoin miner capitulation a lot, a “buy” is rapidly forming on the key BTC signal just a few days after the “recovery” was signaled.
A Buy signal is forming on the Hash Ribbons indicator.
— Charles Edwards (@caprioleio) December 27, 2019
This is notable because previous “buy” signals led to many bullish reversals. The Hash Ribbons printed a “buy” in the middle of January, months before BTC broke from $4,000 to $5,000, creating a domino effect and pushing BTC to $14,000 by June. This ended the 330% rally from the bottom.
What’s interesting is that the end of miner capitulation would have the bulls celebrating. According to Scott “The Wolf of All Streets” Melker, Bitcoin and its performance last week created an important and key BTC signal on the weekly chart – named a “massive bullish divergence in oversold territory on Stochastic Relative Strength Index.”
So, are we seeing a new run by Bitcoin (BTC) soon?
The truth is, this is only a rumor now. However, if the cards play out nicely, we could definitely see BTC rising higher as the new year approaches.
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