Bitcoin (BTC) has recently shown renewed strength in its market stance, with positive signals emerging from key market indicators.
This emerging positivity in BTC’s market indicators comes on the heels of the asset seeing a gradual recovery in price over the past weeks.
Earlier today, BTC again came closer to the $70,000 mark with a 24 hour high of $69,217. However, the asset has since retraced with a current trading price of $68,644, up 1.6% in the past 24 hours.
Bitcoin Hash Ribbons Flash Buy Signal
According to an analysis by CryptoQuant analyst Darkfost, the “Hash Ribbons” indicator has flashed a buy signal, historically aligning with strong long-term performance for BTC. This signal follows an earlier occurrence during the summer, indicating strong prospects for Bitcoin’s growth.
The Hash Ribbons indicator tracks shifts in Bitcoin’s hash rate, an important metric that reflects the overall health of the mining ecosystem.
As Darkfost explains, this indicator has consistently proven accurate in predicting Bitcoin price rallies, with only one notable exception during the COVID-19 pandemic, creating a unique market disruption.
By analyzing Hash Ribbons chart, Darkfost noted: “This suggests that another BTC rally could potentially occur over the middle-term.”
Miners’ Position Signals Market Optimism
Adding to the bullish outlook, another analyst, Avocado onchain, has pointed out a notable trend in miners’ behavior, which may also contribute to an optimistic price outlook for BTC. Miners play a critical role in Bitcoin’s cyclical market patterns, often influencing price volatility with their buying and selling actions.
According to Avocado, miners tend to hold onto their Bitcoin rather than sell during periods of price stagnation, which can create favorable conditions for a price surge when demand picks up.
Miners Are Betting on a Bitcoin Price Rise
“Historically, when the MPI rebounded from a low, #Bitcoin’s price tended to experience significant increases.” – By @avocado_onchain
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https://t.co/aa9bcHN9XJ pic.twitter.com/8PsOQdBMEl
— CryptoQuant.com (@cryptoquant_com) October 28, 2024
The Miner Position Index (MPI) shows that miners still hold onto their Bitcoin with minimal movement toward exchanges, indicating limited selling pressure from these influential market participants.
Historically, a rebound in the MPI has been associated with Bitcoin price increases, suggesting miners are holding onto assets in anticipation of higher prices.
Additionally, the block rewards per block—a measure of transaction activity on the network—are increasing, signaling greater activity on the Bitcoin blockchain, which often correlates with price appreciation.
Featured image created with DALL-E, Chart from TradingView
Source: https://www.newsbtc.com/bitcoin-news/bitcoin-hash-ribbons-flash-buy-signal-analysts-see-new-highs-on-the-horizon/