As Hash Ribbon capitulation deepens, history points to price expansion phase for BTC

Extreme weather in the U.S. caused higher costs for bitcoin miners, leading them to cut computing power (hashrate), which has revived the historically bullish Hash Ribbon metric. This indicator tracks the 30-day and 60-day moving averages of hashrate; capitulation occurs when the short-term average falls below the long-term average. Historically, when the 30-day average crosses back above the 60-day average, coinciding with a shift in price momentum, it has marked long-term buying opportunities. The hashrate has fallen by about 20%, and the next difficulty adjustment is projected to drop by roughly 17%, the largest since China banned mining in July 2021. Previous instances of Hash Ribbon capitulation, such as in late November (near $80,000) and mid-2024, preceded significant Bitcoin price rallies. The key question now is whether this pattern repeats, leading to a renewed expansionary phase for BTC as the hashrate normalizes.

(Source：CoinDesk)