Bitcoin's Hash Ribbons Metric Signals Buying Opportunity Amid Miner Pressure
According to Cointelegraph, Bitcoin's (BTC) Hash Ribbons metric, monitored by Capriole Investments, has issued a 'buy signal' for the fifth time in 2025. This historically reliable indicator suggests a potential buying opportunity despite recent price declines. Since the beginning of October, Bitcoin miners have increased their BTC sales, reflecting a shift in market dynamics. The cryptocurrency is currently trading between its yearly open at $93,000 and a demand zone below $90,000, indicating uncertainty among traders regarding its future price direction.
The Hash Ribbons metric, known for identifying hashrate and price recovery following miner capitulations, indicates that miners are experiencing pressure. The 30-day moving average (MA) of the hashrate has fallen below the 60-day MA, signaling miner capitulation. This often aligns with significant price discounts and long-term buying opportunities. Despite the metric's impressive track record in identifying price bottoms, CryptoQuant contributor Darkfost advises caution, noting that while these periods can be bearish in the short term due to increased miner selling, they historically present strong accumulation opportunities in the long term.
Throughout 2025, miners' BTC reserves have remained relatively stable, though there has been consistent selling since early October. As of Tuesday, known miner wallets held approximately 1.8 million BTC, a decrease of 5,000 BTC since October 10. Bitcoin's recent price recovery faced resistance at the yearly open of $93,300, which aligns with the 200-period simple moving average (SMA). However, support was found in the $89,000-$90,500 demand zone, where the 50 and 100 SMAs are currently positioned.
For Bitcoin to break out of its current downtrend and aim for a sustained recovery toward $100,000, it must surpass the resistance at $92,000 and the 200 SMA. Cointelegraph reports that bears may attempt to push the price below the $90,000 support, potentially leading to a prolonged decline that could reach as low as $40,000. This article does not offer investment advice or recommendations. All investment and trading decisions involve risk, and readers are encouraged to conduct their own research before making any decisions.