The Hash Ribbon “buy” signal, derived from Bitcoin’s network hashrate trends, has recently triggered again, suggesting a possible surge to $170,000 per coin, according to analyst Astronomer Zero.
On June 12, the analyst shared a chart comparing every weekly Hash Ribbon buy signal since 2020 on the BTC/USDT perpetual contract at Binance. The chart highlights how this signal has historically preceded substantial price rallies.
The Hash Ribbon indicator marks miner capitulation and recovery phases by comparing 30-day and 60-day moving averages of network hashrate. When the 30-day average climbs above the 60-day average after a downturn, it signals that mining-related selling pressure has eased. This transition has consistently aligned with significant price increases and increased spot and derivatives accumulation.
Previous Hash Ribbon buy signals delivered notable gains:
- Late 2020: Bitcoin rose 235% from around $18,000 to over $60,000.
- Mid-2021: A 59% rally from $30,000 to near $48,000.
- Late 2022: A 260% surge from below $18,000.
- Early 2023: Price climbed 175% to about $60,000.
- Mid-2024: A 100% rally above $100,000.
The latest crossover occurred three weeks ago with Bitcoin near $105,000. Astronomer Zero highlights a key resistance zone between $160,000 and $165,000. Even if the price moves by the smallest historical gain of approximately 60%, Bitcoin would reach roughly $170,000.
While some caution that correlation does not imply causation and note factors such as ETF inflows and supply shocks are already factored into prices, the Hash Ribbon signal’s unbroken track record over the past five years attracts attention from traders anticipating the next major advance.
At the time of reporting, Bitcoin traded at $104,898, down 3.1% in 24 hours.