Bitcoin Buy Signal Flashes as Hash Ribbons Indicate Miner Capitulation and Long-Term Accumulation

A well-known Bitcoin market indicator known as Hash Ribbons has once again flashed a buy signal—historically a sign that a major price rebound could be on the horizon. The signal, explained in a June 5 analysis by CryptoQuant contributor Darkfost, points to miner capitulation—a phase where mining becomes unprofitable for some and prompts them to sell their holdings. This shift typically leads to short-term volatility but has often preceded extended bullish runs.

The Hash Ribbons metric tracks the 30-day and 60-day moving averages of Bitcoin’s network hashrate. A crossover between these two averages signals that miner stress is subsiding, making room for stronger market conditions. The recent signal follows a period of intense mining activity, with the Bitcoin network reaching new all-time highs in hashrate—suggesting elevated competition and rising operational costs.

“Mining becomes unprofitable for certain miners, and they are forced to sell BTC in order to stay operational,” Darkfost noted.

While this can trigger short-term price dips, it typically sets the stage for supply tightening and price recovery as weaker miners exit the market.

Adding to the optimistic outlook, fellow CryptoQuant analyst Amr Taha highlighted a fresh wave of accumulation by long-term holders (LTHs)—investors who retain Bitcoin for more than 155 days. Their net realized cap has now surpassed $20 billion, a level historically linked to the early stages of bull markets.

On the exchange side, data reveals a shift in investor behavior. Over 20,000 BTC were withdrawn from major exchanges Bitfinex and Kraken within two days—often interpreted as a sign that investors prefer to hold rather than trade. Meanwhile, Binance increased its spot trading market share from 26% to 35% in early June, hinting at growing confidence and liquidity in the market.

At the time of writing, Bitcoin is trading at $104,952, down 0.4% over the past 24 hours and 6.6% below its all-time high of $111,814 set on May 22. Despite this dip, the asset remains within a 7-day trading range of $103,414 to $108,776.

Technical indicators present a mixed short-term picture. The MACD and momentum tools lean slightly bearish, and the Relative Strength Index (RSI) sits in neutral territory at 51.68. Bitcoin’s price is also trading below key short-term levels, including the 20-day simple moving average (SMA) of $106,752. However, the Stochastic RSI indicates that Bitcoin is oversold, potentially opening the door for a rebound.

A decisive move above the $106,000 to $108,000 range could set the stage for a retest of the record high. Conversely, failure to hold support above $103,000 might push prices closer to the psychological $100,000 level. Short-term volatility aside, broader signals suggest the long-term trend remains tilted toward growth.