Bitcoin’s Hash Ribbons indicator, a prominent on-chain metric used to assess miner behavior and network health, has issued a bullish “buy” signal for the fifth time in 2025. Despite Bitcoin’s recent price correction to around $80,500 from an all-time high of $126,000, analysts remain cautiously optimistic about the asset’s long-term prospects. The metric suggests that, historically, such signals have preceded significant price recoveries, offering potential entry points for investors.
Key Takeaways
- •Hash Ribbons signal indicates miner capitulation, potentially signaling an upcoming upside.
- •Miner selling activity has increased since early October, although reserves remain relatively stable.
- •Bitcoin is consolidating between its yearly open at $93,000 and a demand zone below $90,000.
- •Short-term bearish pressure exists, but long-term perspectives remain optimistic based on historic metrics.
Hash Ribbons: Mining Pressure and Long-Term Opportunities
The Hash Ribbons indicator, which combines the 30-day and 60-day moving averages of Bitcoin’s hashrate, has recently fallen below the 60-day average, indicating miner distress or capitulation. This movement is often associated with market bottoms and strategic accumulation phases. According to CryptoQuant analyst Darkfost, these phases tend to be bearish in the short term, as miners may increase sales to cover operational costs. However, this pressure historically creates strong accumulation opportunities, setting the stage for subsequent rallies.
The charts reveal that miner reserves, which have hovered near 1.8 million BTC, have declined marginally since early October, reflecting sustained selling activity. Despite this, the overall reserves have remained relatively stable, suggesting miners are not aggressively offloading their holdings but are under some pressure.
Bitcoin’s Price Action: Between Resistance and Support
Bitcoin recently faced rejection at the resistance level of $93,300, coinciding with the 200-period simple moving average (SMA) on the four-hour chart. Support was established around the $89,000 to $90,500 zone, where the 50 and 100 SMAs currently reside, providing a critical foundation for any potential rebound.
To break free from its current downtrend toward a sustained rally, Bitcoin needs to push above the $92,000 mark and clear the 200 SMA. A successful breakout could set the stage for a move toward $100,000, a key psychological and technical target. However, bearish sentiment persists with warnings that if Bitcoin falls below $90,000, a prolonged correction toward $40,000 remains possible, indicating heightened volatility in the near term.
In conclusion, while short-term price action remains uncertain, the Hash Ribbons metric suggests that long-term investors could find attractive entry points during these periods of miner distress, aligning with historical patterns of market bottoms and subsequent rallies.