The Hash Ribbon Indicator has flashed a “buy” signal for the second time in 2020, indicating a bullish rally for bitcoin could occur in the near future.
According to a report by IBTimes, the Hash Ribbon indicator signaled “buy” when BTC’s price reached $9,250. The report claims the indicator is normally triggered just prior to a major price rally, with the last flash occurring on April 25 at the price of $7500.
The indicator analyzes bitcoin’s hash rate and mining difficulty as key metrics in order to evaluate the price potential for bitcoin. Hash Ribbon’s creator, Charles Edward, said the tool could be used to identify bottoms for purchasing bitcoin by following one-month and two-month simple moving averages for bitcoin’s hash rate.
#Bitcoin Hash Ribbons “Buy” signal just confirmed.
The post-Halving signal is particularly special.
It will probably be a very long time until the next occurs.…and so the great bull run begins.https://t.co/l90SDYs8kC
— Charles Edwards (@caprioleio) July 13, 2020
While the indicator only triggers a signal once a year, the second “buy” in 2020 occurred as a result of the bitcoin block reward halving in May.
Despite the indicator’s historical bullish signaling, some community members are concerned that March’s crypto market crash could have created mixed sentiments and affected bitcoin’s volatility and price.
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