Indicator Overview

The Hash Ribbons is a specialised fundamental indicator designed to identify periods of Bitcoin miner distress and subsequent recovery. This tool monitors the relationship between short-term and long-term mining activity to pinpoint market capitulation; a phenomenon that has historically occurred near major price bottoms.

The indicator identifies capitulation zones by calculating the crossover of the 30-day and 60-day Moving Averages of the network hashrate. When the 30-day average drops below the 60-day average, the background of the chart is shaded red, indicating that miners are switching off rigs due to unprofitability. This surrender often clears the market of weak hands and precedes significant bullish price action.

How To Use

Traders can use Hash Ribbons to time long-term entries during periods of maximum market fear and structural miner exits.

• Capitulation Shading: The red background bands represent active miner capitulation. These zones highlight periods where the cost of mining exceeds the rewards, forcing miners to stop selling at a loss or go out of business entirely.

• Recovery & Buy Signals: The end of a shaded zone indicates that the 30-day hashrate average has recovered back above the 60-day average. This signal suggests that the worst is over, miner profitability is returning, and a new accumulation phase has likely begun.