Sun, August 21, 2022 ▪ 8:00 ▪
min. read – by
This week was marked by a downturn in the cryptocurrency market. On occasion, bitcoin, like other altcoins, dropped significantly to the point where losses exceeded the $600 million mark. But on the same day, there were signs that the dark days of bitcoin were over. On-chain analysts do see accumulating profits in perspective based on the hash tape.
The magic of hash tapes
In the early hours of the morning, the Bitcoin Archive announced on Twitter the news that will disgust traders unhappy with the recent turn of events. Here is the content of his tweet:
“The hash tape gives another buy signal!
This has been a very accurate indicator in the past, signaling big gains for #Bitcoin.
Follow @caprioleio – he created this indicator »
A post that received comments from network analyst Lukasz Widra, who had already given the same buy signal on his own account.
A hash tape buy signal just flashed on the #Bitcoin #BTC chart.
Historically, it has been one of the best medium to long term buying indicators. I’m waiting for confirmation at the end of the day because it may still be wrong. »
“I am also looking forward to the close of the week, which we will discuss on Monday. If the Broken Ribbons buy signal is confirmed by then, I will go into much more detail about it, linking it to the current chart structure.
Stay tuned ! »
Bull run in perspective?
Bitcoin hash tapes are a tool that has been used in the past. Also note the presence of the difficulty tape, another bitcoin trading tool at your disposal.
Last year, TechPages highlighted the effectiveness of the hash feed in an article that talked about proven results. Hash Ribbons is a moving average composed of bitcoin hash rate and mining difficulty. Once this step is taken, the so-called “weak” miners capitulate and start selling their coins. From time to time, stronger miners will enter the game. And it is this upward signal that stimulates purchases, and, consequently, a return on investment of up to 5,000%.
Case in point: When Bitcoin was trading at $1,200, the final signal showed a 5,000% return on investment. This allowed the cryptocurrency queen to reach $20,000 and put her in the spotlight.
Now, if the price of a bitcoin is $30,000, this 5,000% return would raise its value to $1 million per coin. If it is 500%, the coin can be revalued up to $150,000.
In short, the Hash Rubbon that analysts have just mentioned will certainly boost investor morale. So while waiting for their confirmation, they better keep calm. And don’t rush into making decisions.
Get a digest of news from the world of cryptocurrencies by subscribing to our new daily and weekly newsletter so you don’t miss any important Cointribune news!
Blockchain and crypto revolution is in full swing! And on the day when the blows are felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it.