Cryptocurrency analyst Mikybull Crypto has indicated the return of a key technical indicator signaling a buying opportunity for Bitcoin. According to his analysis, Bitcoin could experience a significant upward trend that might push its price up to $130,000.
Bitcoin Sees Uncommon Buy Signal
Mikybull Crypto shared on X (formerly Twitter) that Bitcoin had recently encountered a rare hash ribbon buy signal. The analyst highlighted that such signals are typically followed by a substantial price rally. This development is positive for Bitcoin as the hash ribbon buy signal implies that the miners’ sell-off pressure may have subsided or eased.
The hash ribbon indicator monitors the 30-day and 60-day moving averages of the BTC hash rate. The buy signal typically occurs when the 30-day MA crosses over the 60-day MA, indicating a potential recovery in the hash rate after the worst of miners’ capitulation.
Given the influence miners wield over Bitcoin’s supply, their capitulation significantly impacts the market and specifically Bitcoin’s price. Recent reports have shown that miners sold more than 30,000 BTC in June, resulting in notable price declines for Bitcoin. The Bitcoin halving event might have triggered these sell-offs as miners faced reduced mining rewards amidst rising operational costs and a downtrend in Bitcoin’s price.
With the hash ribbon signal signaling a decline in miners’ selling pressure, Bitcoin could be poised for a substantial surge ahead. In line with this, Mikybull Crypto advised his followers to brace for a significant price rally that could propel BTC above $100,000 towards the $130,000 target, aligning with his previous forecasts.
Crypto analyst James Van Straten also pointed out that miners’ revenue is nearing its 365-day moving average, indicating a potential end to miner capitulation. He suggested that once miners’ revenue surpasses the $40 million yearly average, Bitcoin could continue its upward trajectory.
No Need for Concern Among Bitcoin Investors
One of the factors causing unease among Bitcoin investors is the anticipated selling pressure resulting from Mt. Gox’s Bitcoin repayments. These concerns likely contributed to the recent price correction after Bitcoin briefly surged to $68,000. Nevertheless, on-chain metrics indicate that investors need not panic.
An analysis by Crypto analyst OnChainSchool highlighted a significant increase in BTC withdrawals from Kraken following Mt. Gox users receiving their BTC repayments. This trend suggests that users are opting to hold onto their tokens rather than sell them, which is a positive sign.
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