Ted, a well-known crypto key opinion leader (KOL), has identified a buy signal that could potentially drive Bitcoin to unprecedented prices.
The prominent market analyst shared that the Bitcoin Hash Ribbon has flashed a buy signal on the weekly timeframe. According to him, the largest cryptocurrency by market cap could surge to uncharted territory on account of the bullish indicator.
Notably, the assertion comes when Bitcoin has struggled to sustain an upward trajectory. The asset’s price action has been inconsistent in the past weeks, as sideways macroeconomic trends have clamped down on all bullish attempts by the premier asset.
Buy Signal Flashes on Bitcoin
Ted noted that the Bitcoin Hash Ribbon indicator has had a bullish impact on the asset’s price at every instance of emergence. For the uninitiated, the on-chain metric tracks the period of miner capitulation and recovery. When revenue from mining cannot cover miners’ operating costs, the capitulation phase, characterized by Bitcoin sell-offs to sustain mining activities, kicks in.
The recovery phase emerges at a converse scenario, shown in the movement of the 30-day and 60-day moving averages. As Ted identified, a buying opportunity occurs when the former crosses the latter, signaling that Bitcoin’s price might recover.
A New Bitcoin All-Time High?
Interestingly, the analyst pointed out that the hash ribbon buy signal has historically spurred appreciable upsides in Bitcoin’s price. An accompanying chart shows that the pioneering cryptocurrency saw new all-time highs the last two times the signal flashed on the weekly timeframe.
Buy Signal on Bitcoin Hash Ribbon Indicator
For perspective, the Bitcoin Hash Ribbon flashed a buy signal on the week of June 19, 2023, contributing to the asset’s surge past 2021’s high of $69,000 to $73,000 in March 2024. Another crossover occurred in the latter days of July 2024, with the asset rallying from that point to January 20’s all-time high of $109,312.
Interestingly, Ted identified that a similar signal flashed in mid-March, raising optimism about a price rebound. He stressed that a repeat of Bitcoin’s historical reaction to the moving averages crossover would ensure a 31% surge to its current all-time high and further parabolic expansion from there.
Nonetheless, Bitcoin must conquer the resistance level at $94,280 for this move. Citing the MVRV Extreme Deviation Pricing Band, market expert Ali Marinez identified the price mark and a new all-time high of $112,380 as two critical supply zones for Bitcoin.
At the time of writing, Bitcoin trades at $83,835, up less than 1% in the past 24 hours.
