Bitcoin Hash Ribbons Indicator Flashes Buy Signal Despite Miner Pressure – Coincu

CryptoQuant’s analyst Darkfost announced on June 5th that Bitcoin’s Hash Ribbons indicator triggered a buy signal. This was derived from data showing that the cryptocurrency’s hash rate recently set a new all-time high.

Analysts highlight how miner pressure often leads to market opportunities, potentially boosting Bitcoin’s price longer term.

Bitcoin Hits New All-Time High in Hash Rate

Bitcoin’s Hash Ribbons indicator recently produced a buy signal, highlighting potential long-term growth. Data from CryptoQuant, shared by analyst Darkfost, illustrated miners’ sustained pressure, likely spurring sales to maintain operations. With miners struggling to manage current hash rate highs, the buy signal foreshadows potential future price gains, offering hope to investors seeking buying opportunities. Darkfost stated,

Experts report Bitcoin’s upward movement is likely as long-term holders (LTHs) start reaccumulating, with their net realized cap surpassing $20 billion. Over 20,000 BTC shifts off exchanges, signaling reduced supply with stronger market confidence. According to CryptoQuant, the potential for price spikes remains despite miner pressures.

Mining becomes unprofitable for certain miners, and they are forced to sell BTC in order to stay operational. This may lead to short-term selling pressure, but it often prepares the market for longer-term rallies as network stress decreases and supply begins to tighten.

Bitcoin Valuation and Market Sentiment

Did you know? The Hash Ribbons indicator, despite being uncommon, has historically forecasted bullish rallies in Bitcoin, particularly when miner sell pressure balances with strategic long-term buyer accumulation.

Bitcoin’s current price valuation stands at $104,558.73, with a significant market cap of $2.08 trillion and a dominance of 63.28% position. Over the last 90 days, CoinMarketCap data shows an 18.43% price rise despite a 3.09% weekly dip. Note: Supply constraints, with 19,874,590 BTC in circulation out of a 21,000,000 cap.

Market sentiment exhibits optimism as institutional interest increases. Financial analysts emphasize, as BTC price approaches a critical juncture between $106,000 and $108,000, further gains could occur if breached. Coincu’s research indicates a buy signal precedes bullish cycles, albeit with necessary caution due to potential market corrections.