As a seasoned crypto investor with experience through multiple market cycles, I’m closely monitoring the current Bitcoin (BTC) situation. The recent confirmation of the Hash Ribbon Capitulation signal, as explained by Charles Edwards, is a red flag for me. This indicator has historically preceded significant price corrections.
Expert Charles Edwards anticipates further discomfort for Bitcoin (BTC) investors in the approaching weeks. Concurrently, transactions in the Spot Bitcoin ETF suggest that traditional financial sector investors believe that the “dip-buying opportunity” has already been seized.
“Buy Bitcoin” signal might be “weeks away”: Charles Edwards on miners’ capitulation
In mid-May, the Hash Ribbon Capitulation signal – a widely used miner sentiment gauge suggesting mining profitability woes – was triggered. Notably, this occurred right before Bitcoin (BTC) experienced its most significant price decline since FTX’s collapse, as pointed out by Charles Edwards, a well-known Bitcoin investor and Capriole Investments founder.
Since the FTX scandal and Bitcoin’s price plunge to $15,000, which was the most significant decline since then, there was an earlier Hash Ribbon Capitulation indication that activated around mid-May.
— Charles Edwards (@caprioleio) July 10, 2024
The expert mentioned that the point at which Bitcoin (BTC) can be purchased to mark the end of the upcoming recession, referred to as the “buy” signal, could potentially present itself soon.
As a crypto investor, I believe the anticipated market bottom may still be “a few weeks down the road.” According to my analysis of current trends, this is my assessment based on our recent conversation.
Joe Burnett, a Bitcoin researcher and the senior product manager at Bitcoin-focused platform Unchained, agreed with his remarks.
Feels like the best buying opportunity since $15k is here or a few weeks away.
Based on current market trends, investors and traders should brace themselves for potential Bitcoin (BTC) price lows not seen since mid-November 2022, which is approximately 20 months ago.
As a researcher studying Bitcoin’s mining landscape, I can explain that the Hash Ribbon “capitulation” signal is triggered when the 30-day moving average of the total Bitcoin hash rate falls beneath the 60-day moving average.
Crypto natives expect worst, while TradFi already buys dip
Put differently, this is the point where certain Bitcoin miners are forced to halt their activities due to incurring losses.
Simultaneously, conventional investors, having recently gained access to Bitcoin (BTC) through new US-based spot Bitcoin ETFs, are now capitalizing on price drops by purchasing more at reduced costs.
It’s intriguing how traditional finance (TradFi) investors are purchasing Bitcoin dips, while crypto natives generally hold a bearish stance and substantially reduce risk during the first significant correction since 2023.
— Arthur (@Arthur_0x) July 11, 2024
Arthur Cheong, a partner at the $500 million venture capital firm DeFiance Capital, pointed out an intriguing discrepancy. While Traditional Finance (TradFi) newcomers express excitement towards Bitcoin (BTC), crypto insiders or natives maintain a skeptical perspective.
The current price of Bitcoin is sitting at $59,016, representing a 1.85% increase over the past 24 hours. Meanwhile, the Crypto Fear and Greed Index has bounced back to 29 out of a possible 100 points, keeping it within the “Fear” category.
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2024-07-11 17:12