On-chain data shows the Bitcoin Hash Ribbon golden cross has failed to provide an uplift to the price for the first time ever.
Bitcoin Hash Ribbons Have Recently Formed A Death Cross
As pointed out by an analyst in a CryptoQuant post, the BTC Hash Ribbon model has failed for the first time in the crypto’s history.
The relevant indicator here is the “mining hashrate,” which measures the total amount of computing power connected to the Bitcoin network right now.
When the value of this metric trends up, it means miners are bringing more mining rigs online currently. On the other hand, a decline suggests these chain validators are ditching the network and disconnecting their machines.
The Hash Ribbon is a BTC model that’s based on two moving averages of the hashrate metric. A “moving average” (MA) is the mean value of any quantity that, as its name implies, keeps moving with the metric and changes its value accordingly.
The benefit of an MA is that it smooths out the curve and removes any temporary fluctuations that have no bearing on the long-term trend.
In the context of the Hash Ribbon model, the Bitcoin hashrate MAs of interest are the 30-day and the 60-day versions. Here is a chart that shows the trend in these two ribbons over the last few years:
Looks like the two MAs of the metric have gone through a cross recently Source: BTCUSD on TradingViewFeatured image from mana5280 on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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