Crypto analyst Mikybull Crypto has revealed the return of a technical indicator that represents a buy signal for Bitcoin. Based on his predictions, the flagship crypto could enjoy a massive rally that could eventually send its price as high as $130,000.
Bitcoin Witnesses “Rare” Buy Signal
Mikybull Crypto revealed in an X (formerly Twitter) post that Bitcoin had just witnessed a rare hash ribbon buy signal. The analyst added that “an explosive rally” follows whenever this happens. Indeed, this is bullish for BTC as the hash ribbon flashing a buy signal suggests that miners’ capitulation might be done or at least has cooled off.
The hash ribbon indicator tracks the BTC hash rate’s 30-day and 60-day moving averages. The buy signal usually occurs when the 30-day MA crosses over the 60-day MA, as this suggests that the worst of the miners’ capitulation is over and that a recovery in the hash rate has begun.
Due to the Bitcoin supply they control, miners’ capitulation is known to significantly impact the market and Bitcoin’s price specifically. Bitcoinist reported that these miners sold over 30,000 BTC in June, which led to significant price crashes for the flagship crypto. The Bitcoin halving is believed to have caused these miners to capitulate as their mining rewards were cut in half while dealing with rising operation costs and a downtrend in Bitcoin’s price.
However, as the hash ribbon indicator suggests, this selling pressure from BTC miners has significantly declined, and Bitcoin could enjoy a massive rise from here on. In line with this, Mikybull Crypto told his followers to get ready for a “massive rally” that could send BTC above $100,000 and to a price target of $130,000, as he had previously predicted.
It is worth mentioning that crypto analyst James Van Straten also recently noted that miners’ revenue was again close to its 365-day moving average. The analyst explained that this was another way to gauge if miner capitulation was almost over. The analyst added that Bitcoin would continue to trend higher once miners’ revenue can reclaim the $40 million yearly average.
No Reason For BTC’s Investors To Panic
Another factor that has caused Bitcoin’s investors to panic is the potential selling pressure that could result from Mt. Gox’s Bitcoin repayments. These concerns may have contributed to the recent price correction that the flagship crypto experienced after recovering as high as $68,000. However, on-chain metrics suggest these investors have no reason to panic.
Crypto analyst OnChainSchool noted in a recent analysis that there has been a significant increase in BTC withdrawals from Kraken after Mt. Gox users began receiving their BTC. The analyst noted that this could be a positive signal as it indicates that these users are choosing to hold rather than sell their crypto tokens.
Cryptoquant’s CEO Ki Young Ju echoed a similar sentiment, stating that the instant dump market participants expected from Mt. Gox’s creditors didn’t occur. He also suggested that any price drop that Bitcoin might be experiencing is likely due to market sentiment and not Mt. Gox selling.
Featured image created with Dall.E, chart from Tradingview.com