Bitcoin Price Metric Labeling 2020 Bullish Warns Traders To “Buy” BTC Again

For the first time since July, a bitcoin (BTC) “fancy” metric has surfaced, forecasting a surge to $ 12,000 in August.

As noted by its creator Charles Edwards 3rd of December The Hash Ribbons indicator now signals to buyers that they are entering the Bitcoin market.

Hash bands show a rare “blue dot”

Uploading an annotated graphic to social networks, Edwards, who is also the founder of digital asset manager Capriole, pointed out the similarities between Bitcoin now and before previous rallies.

Bitcoin Price Metric Labeling 2020 Bullish Warns Traders To “Buy” BTC Again
Bitcoin Price Metric Labeling 2020 Bullish Warns Traders To “Buy” BTC Again

“Look what I found. A blue dot”, he commented and identified the new entry point.

Bitcoin hash ribbons chart with “blue dots”. Source: Charles Edwards / Twitter

Hash bands are based on the hash rate behavior of the Bitcoin network and it is intended to indicate to investors when the price is due to the bullish experience.

When miners capitulate due to events like a major price correction, the hash rate theoretically drops to revive thanks to Bitcoin’s automated difficulty resets. The hash bands show that roughly half of this surrender by miners is an optimal time to buy positions.

As the saying goes: “Price follows hash rate “In Bitcoin, hash bands give the popular mantra a technical test.

Edwards’ “blue dot” occurs when the value of the 30-day hash rate exceeds 60 days indicates that a restore is in progress.

“The Hash Ribbon is soon preparing for a buy signal”, continuously Rafael Schultze-Kraft, CTO of Glassnode Online Analytics Resource, with another graphic.

“If the hash rate recovers (30-day MA exceeds 60-day MA) and BTC price dynamics are positive, the hash band has given excellent entry points.”

Bitcoin price chart with hash bands. Source: Rafael Schultze-Kraft / Twitter

Schultze-Kraft described the hash bands as “elegant” for the reliability of the indicator. In July, the time of the previous “Blue Dot” event, it took Bitcoin a few weeks to record highs that had not been reached in more than a year.

Bitcoin is still not over $ 20,000

The signal comes when Bitcoin is still below $ 20,000after seeing significant volatility while being turned down just above all-time highs.

The great selling pressure remains while, on the contrary, a successful breakout of the resistance would allow Bitcoin a clean jump to what is likely the next resistance level of $ 22,000. as shown in the data in the exchange order book.

At the time of going to press, BTC / USD was spinning around $ 19,300;; So far, the $ 19,500 mark has not been restored.

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