Bitcoin’s miner capitulation may be coming to an end, as indicated by the Hash Ribbon indicator. This shift could signal a move from negative to positive momentum in price, potentially presenting lucrative buying opportunities, according to technical analyst Ali Martinez.
The Hash Ribbon suggests that Bitcoin miners are bouncing back, hinting at a possible uptick in price. This indicator, which monitors the moving averages of the Bitcoin hash rate, has recently issued a buy signal. Historically, such signals have been reliable in forecasting price increases, occurring when miners regain their footing.
Over the past year, this signal has appeared only once, and in the last two years, it has emerged three times, each time leading to bullish price movements. A similar signal in August 2022 marked the end of a bear market and sparked a rally.
In the short term, Bitcoin has managed to recover from the $63,000-$64,000 support range. A bullish outlook could be confirmed with a daily close above $68,300. Resistance levels are expected between $67,000 and $68,300, with a breakthrough potentially pushing prices to reach the all-time highs of $72,000-$74,000. However, short-term fluctuations and retracements are to be anticipated.
Martinez also points out a new hidden bullish divergence, signaling a continuation of the upward trend for Bitcoin. Key liquidity levels to watch for are around $63,300 and $67,500-$69,000, as price movements may be influenced by these thresholds.
