By definition, Bitcoin is still in a bear market. An analyst recently commented on this as follows.
“ALLOW ME TO EXPLAIN THIS: BTC HAS NOT REACHED A HIGHER HIGH IN A WHOLE YEAR, SO BY DEFINITION IT IS NOT A BULL MARKET. BTC HAS HAD LOWER LOWS AND LOWER HIGHS CONSECUTIVELY FOR AN ENTIRE YEAR, SO IT IS BY DEFINITION A BEAR MARKET, ”HE WROTE, REFERRING TO THE CHART BELOW THAT SHOWS BTC'S PRICE ACTION AND MACROPHASES.”
This was taken up by Peter Schiff, the prominent supporter and investor of gold. Still, a crucial on-chain signal has just appeared that preceded some of Bitcoin's biggest rallies in the past decade.
Bitcoin bull signal just entered
As a prominent Bitcoin commentator noted for the first time in a few months, the hash ribbons have just printed a "buy" for the first time in a few months.
The hash ribbons are an indicator that uses a short-term moving average and a long-term moving average of the hash rate. If the short-term moving average exceeds the long-term moving average, this is considered a bullish sign. And if the opposite happens, it's a retrograde sign.
The "buy" signal emanating from the hash bands is extremely remarkable for Bitcoin bulls. This was further confirmed by digital asset investor and analyst Charles Edwards, who found that each occurrence of the signal was preceded by strong rallies on Bitcoin.
A strong mining ecosystem
The bullish crossover and "buy" signal is coming as the crypto mining industry has signaled that it is healthier than ever. Cryptocurrency data provider TradeBlock reported last week that the bitcoin hash rate (seven-day moving average) hit a new all-time high of over 124 exahashes per second. Bitcoin's network problems will follow, according to analyst “PlanB”:
“DESPITE THE DEATH SPIRAL FUD, MINING SURRENDER FUD, FUTURE MANIPULATION FUD, CORONA, PLUSTOKEN FUD, TETHER FUD, WHALES THAT SELL FUD ETC. ... BTC HAS JUST HAD ITS THIRD BEST QUARTERLY CLOSING OF ALL TIME ($ 9.1K) AND IS HEADING FOR A DIFFICULTY-ATH ON MONDAY (17E12) TO ”.
This is bullish for the Bitcoin price, according to Edwards. Edwards released a pricing model in December 2019 that shows that the energy consumption level of the Bitcoin network matches the price action. His latest so-called "energy value" analysis suggests that a recovery to $ 12,800 will take place in the coming months.
