Bitcoin exchange rate: Is the death cross? Hash Ribbon under the magnifying glass

The Bitcoin-Miner to be on the verge of a capitulation. The a metric the name of Hash-Ribbon from says. We are actually on the verge of a dramatic price fall?

Dr. Philipp Giese
15. November 2019 BTC $ 8,497.52 -2.88% part Facebook Twitter LinkedIn xing mail

A metric that is currently in the round: According to the so-called Hash-Ribbon it is bad for the Bitcoin price. The current behavior of the Miner is to remind you of the time before the great crash of 2018. In times when the price of Bitcoin at the US $ 9,000-limit to fail on a regular basis is the water on the mills of the bears. So Cole Warner, for example, writes on Twitter:

Miner capitulation warning!

Hash ribbons have confirmed a crossover.

Last time this happened was a year ago, just before $BTC broke down from $6k.

I have to step out, will. explain in more detail tomorrow, but TL;DR this is a BEARISH signal

Move slow...but manage risk. pic.twitter.com/1v4ctkSKiq

— Cole Garner (@ColeGarnerBTC) November 15, 2019

warning-Mining-surrender! Hash Ribbons have confirmed this to be a Crossover. The last Time a year ago, just before Bitcoin dropped below $ 6,000... in Short, this is a very lot of bids due soon Signal happened.

But the situation is really so desperate? To be able to be the judge of that, we must first clarify what the Hash of the Ribbon is at all. Charles Edwards introduced this metric in an article on Coinmonks the end of October. It is, ultimately, to the contemplation of two sliding average values of the Hash Rate. He considered, how about the Hash of the moving averages of the last month, and the last two months of each other behavior Rate. In his opinion, a death is a cross between these moving averages a very lot of bids due soon, a Golden cross is a bullishes Signal.

The rationale is understandable: Falls with respect to the Hash Rate of the moving average in the last month, under the of the last two months, speaks for the Increase of the Mining was slowed down significantly. In contrast, an Increase in the mechanical would mean in the last month, over the sliding average of the last two months suggest that the Mining companies upgrade.

Finally, he points out that developments from the Bitcoin-showed a rate in fact, according to such Crossings interesting price movements:

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We see that before the big fall by the end of 2018, the Hash Rate went up dramatically in the knee: The red line fell below the blue. The red is the moving average over the last month, the blue line is over the last two months.

Rips it Bitcoin now, in the depth?

What now Worries: The two middle values seem to be on the verge of a death cross. Will follow the price of Bitcoin this negative Trend?

As always, first to keep calm. Each metric applies only so long, until it was disproved. Anyway, the Thesis to be worth it, in more detail question: on the verge of a bearish Crossing of the Hash Ribbon for the last two years, more and more often.

Some of the things you see under the magnifying glass better. In the case of the analysis of such crosses between different signals, it may help to consider the ratio of the two signals. Let us, therefore, the ratio of the two mean values. The cosmetic's sake, we pull 1. Thus, negative values for bearish periods, and positive values stand for bullish times. A Fall in this ratio to below Zero would correspond to the above-mentioned death of the cross.

is Like from the point of view of this ratio the situation? Not really dramatically. The Hash-Ribbon ratio is still positive:

in addition, we see that the beginning of 2019, this ratio fell twice already below Zero. The Bitcoin rate, the crack is in the basement.

The Hash-Ribbon: A new indicator, but no reason to panic

Certainly, it makes sense to keep the Hash Rate in the eye. Thus, any daily fluctuations, investors will not worry about, it is also useful to consider more sluggish variables, such as the Hash of the Ribbon, or the ratio of the mentioned average values. Analysts and those who want to be, have a new Tool in your collection. With respect to the Bitcoin rate, you should not worry currently, however, on the Basis of the Hash Ribbon.

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