Bitcoin is poised for an “explosive rally” as miners conclude their latest capitulation phase, according to the latest data from the hash ribbons indicator. This metric, which monitors two moving averages of Bitcoin’s hashrate, has entered long-term “buy” territory for the first time since mid-May.

Miner Capitulation Ends, Hash Ribbons Data Shows

The hash ribbons indicator tracks the 30-day and 60-day moving averages of Bitcoin’s hashrate, reflecting the estimated processing power miners dedicate to the network. A drop in the 30-day moving average below the 60-day moving average suggests miners are struggling, while the reverse indicates a reliable buy signal, historically followed by significant BTC price increases.

Bitcoin hash ribbons. Source: Capriole Investments

On July 23, the hash ribbons indicator exited “capitulation” for the first time in over two months. The last exit occurred in August 2023, when BTC/USD traded at under $30,000. “BTC just witnessed a rare hash ribbon ‘Buy’ signal,” noted popular trader Mikybull Crypto on X, predicting a “massive rally” in a separate post.

BTC/USD chart with hash ribbons data. Source: Mikybull Crypto

Raw data from monitoring resource MiningPoolStats shows Bitcoin hashrate at 676 exahashes per second as of July 22, reinforcing the bullish outlook.

BTC Price Action in Flux

Despite the positive long-term signals, Bitcoin’s price action remains volatile in shorter timeframes. After a recent recovery that pushed the market past $68,000, BTC price action has been in a state of flux. Traders and analysts are watching closely for the next significant movement.

Bitcoin hashrate raw data. Source: MiningPoolStats

The hash ribbons buy signal adds to the growing bullish sentiment in the Bitcoin market, suggesting that the cryptocurrency could be on the verge of a significant price breakout. As the market reacts to these developments, all eyes are on Bitcoin’s next move.