The bitcoin market this year had numerous entry points for investors. One indicator that provided the most profitable entry points (occurring only twice) has shown up yet again after 5 months. It preceded BTC’s epic rally to $10,500 in April and the run-up to $12,500 in August.
The Blue Dot Screams Buy Bitcoin
There is no shortage of pioneers in the bitcoin ecosystem. Charles Edwards, the founder of Capriole Investments, is one such pioneer who propounded the Hash Ribbons indicator for timing entry points in the BTC market. It appeared only twice during the entire course of 2020 and has preceeded massive profit turning bitcoin rallies.
As per the latest update by Edwards, the indicator has shown up yet again after a 5-month hiatus. And is pointing investors to enter another profitable bitcoin buying position.
Look what I found.
— Charles Edwards (@caprioleio) December 3, 2020
The blue dot in question occurs every time after the BTC miners are done capitulating their holdings. Hash Ribbons represent the miner capitulation phase and also, in turn, point to a drop in the overall bitcoin mining hash rate.
When asked by a user as to what’s the difference between the dark red and light red bands, Kraft said:
Light red = “miner capitulation” Dark red = “miner recovery” (30d MA > 60d MA) End of dark red: buy signal. This is when hash rate has recovered and Bitcoin price momentum is positive.
Miner/hash rate recovery occurs when the 30d MA (30-day moving average) crosses above the 60d MA, the Glassnode CTO explained.
More Bullish Indicators Are Reinforcing The ‘Buy BTC’ Sentiment
As per Danny Scott, CEO of the UK based bitcoin exchange CoinCorner, the BTC balance on exchanges is gradually depleting, as investors look to hold on to their positions for a longer time. This, in turn, will directly cause a substantial liquidity crisis in the coming months. A point impressed upon by on-chain bitcoin market analysis Willy Woo as well.
#Bitcoin held at exchanges continuing to fall like never seen before.
— Danny Scott (@CoinCornerDanny) December 2, 2020
This, as it sounds, is pretty much a bullish indication of bitcoin’s future market outlook.
Woo, in his latest update, also mentioned an interesting point about BTC’s future adoption growth. He observed that the top cryptocurrency has followed ‘Moore’s Law’ of Growth from its inception to date. As far as its adoption rate is concerned.
This, when extrapolated over a period of the next 4 years, points to a scenario where approximately 30 percent of the world’s population owns bitcoin.
Source: Crypto Potato