Coinbase’s quarterly earnings exceeded expectations as the leading crypto exchange registered a 44% influx in monthly user growth since the last quarter.
At the same time, after the recent miner exodus out of China, the bitcoin hash rate has recovered spectacularly — so much so that the Bitcoin Hash Ribbon suggests that a long-term bottom is probably in for BTC/USD.
Let’s dig in.
In their quarterly 2021 earnings call, Coinbase announced that the company exceeded expectations by bringing in over $2.23 billion in revenue — a figure notably higher than the expected $1.78 billion, per a CNBC report.
Check out the full article here!
BTC/USD Hash Ribbons flash Buy signal
One of the best-known and most effective signals to buy bitcoin, the Hash Ribbon, just flashed a ‘buy signal’. The indicator has nearly 100% historical efficacy, an average return of 4157%, and an average downside risk of -11% (measured since bitcoin’s inception).
What is the bitcoin hash rate?
Before we look into the hash ribbons indicator, let’s briefly get through the basics of the bitcoin hash rate.
Put simply, the hash rate is the amount of processing power that miners contribute to the bitcoin network at a given moment.
The hash rate goes up when more miners compete to mine bitcoin. Normally, this happens when bitcoin’s Dollar price is relatively high as there is good incentive to mine bitcoin (or when there is a favourable difficulty adjustment). The hash rate can also go up when electricity costs are low relative to the price of bitcoin.
On the other hand, the hash rate usually trends lower when the bitcoin price drops, or when the price stagnates for a (relatively) long time (until the game theory kicks in). When this happens, miners often take their resources elsewhere, as was the case with the recent Chinese crackdown on the mining sector (though this was politically motivated).
In other words, bitcoin mining activity goes down because it is less profitable for miners.
What is the hash ribbon?
The hash ribbon indicator is a long-term signal that is used to indicate macro bottoms for bitcoin’s USD denominated price. It was created by Charles Edwards, who describes its inner workings in this article.
The basic interpretation is that the blue dot signals that the higher low ($29,300) printed before it on the daily chart were a macro low in the market.
In other words, the daily low before the ‘buy’ signal sets a floor price to which BTC is unlikely to ever return to in the future (according to this indicator).
Historically, out of 12 signals, all but one marked macro lows in bitcoin’s price. That said, it goes without saying that the past is no guarantee of the future but rather another consideration for informed decision-making under risk.
Is another Alt season around the corner?
This is where things get tricky. After ringing the alarm bells in May regarding crypto bubbles, I have been largely silent about altcoins, in large part due to the fact that trading ALT/BTC pairs are not for everyone. In fact, it’s probably not a good idea altogether, but when has that ever stopped an honest betting man of good standing from doing the lord’s work?
Jokes aside, take this analysis with a fist of salt.
With that out of the way, the Bitcoin dominance chart, which compares bitcoin’s market capitalisation to other cryptocurrencies, has broken down from an ascending wedge, which coincides with weekly Bollinger Band resistance. Conservatively, assuming BTC.D will not print new lows, this presents an opportunity for altcoins to rally against bitcoin until BTC.D bottoms out. More aggressive targets would aim for fresh lows below the 2018 level marked on the chart. This possibility would not be out of the ordinary, given that Ethereum’s EIP-1559 upgrade is now live.
Needless to say, if BTC/USD fails to trend higher, it’s likely that altcoins will suffer a fate worse than death. And even if BTC/USD heads for higher highs, there is no guarantee that altcoins will fare better until new all-time highs are printed.
N.b. These write-ups take a lot of time and effort to make. I do not have a pay wall. All I ask is that you share and like this content on Twitter (and elsewhere) if you find it useful. It helps to grow my audience and it’s motivating to see that these newsletters are well received.
Bulls lead the way.
Catch you later.
Join the Telegram channel for live updates & setups!
Follow me on Twitter & Gab and my social portals below.
You can also support me in Bitcoin!
BTC address: 3EydsEYpjHn68axKnCUqBB7EbqcxrEjamr
Best regards,
Christopher Attard
Founder of Chris on Crypto
Contributor to www.cityam.com
Connect directly on: Telegram
Coinbase’s quarterly earnings exceeded expectations because the main crypto change registered a 44% inflow in month-to-month consumer progress because the final quarter.
On the identical time, after the current miner exodus out of China, the bitcoin hash charge has recovered spectacularly — a lot in order that the Bitcoin Hash Ribbon suggests {that a} long-term backside might be in for BTC/USD.
Let’s dig in.
Of their quarterly 2021 earnings name, Coinbase introduced that the corporate exceeded expectations by bringing in over $2.23 billion in income — a determine notably larger than the anticipated $1.78 billion, per a CNBC report.
Take a look at the full article right here!
BTC/USD Hash Ribbons flash Purchase sign
Among the finest-known and simplest alerts to purchase bitcoin, the Hash Ribbon, simply flashed a ‘purchase sign’. The indicator has practically 100% historic efficacy, a mean return of 4157%, and a mean draw back danger of -11% (measured since bitcoin’s inception).
What’s the bitcoin hash charge?
Earlier than we glance into the hash ribbons indicator, let’s briefly get by means of the fundamentals of the bitcoin hash charge.
Put merely, the hash charge is the quantity of processing energy that miners contribute to the bitcoin community at a given second.
The hash charge goes up when extra miners compete to mine bitcoin. Usually, this occurs when bitcoin’s Greenback worth is comparatively excessive as there may be good incentive to mine bitcoin (or when there’s a beneficial issue adjustment). The hash charge may go up when electrical energy prices are low relative to the value of bitcoin.
Alternatively, the hash charge normally tendencies decrease when the bitcoin worth drops, or when the value stagnates for a (comparatively) very long time (till the sport concept kicks in). When this occurs, miners usually take their sources elsewhere, as was the case with the current Chinese language crackdown on the mining sector (although this was politically motivated).
In different phrases, bitcoin mining exercise goes down as a result of it’s much less worthwhile for miners.
What’s the hash ribbon?
The hash ribbon indicator is a long-term sign that’s used to point macro bottoms for bitcoin’s USD denominated worth. It was created by Charles Edwards, who describes its inside workings on this article.
The essential interpretation is that the blue dot alerts that the upper low ($29,300) printed earlier than it on the day by day chart have been a macro low available in the market.
In different phrases, the day by day low earlier than the ‘purchase’ sign units a ground worth to which BTC is unlikely to ever return to sooner or later (in keeping with this indicator).
Traditionally, out of 12 alerts, all however one marked macro lows in bitcoin’s worth. That mentioned, it goes with out saying that the previous is not any assure of the long run however somewhat one other consideration for knowledgeable decision-making underneath danger.
Is one other Alt season across the nook?
That is the place issues get tough. After ringing the alarm bells in Could concerning crypto bubbles, I’ve been largely silent about altcoins, largely because of the truth that buying and selling ALT/BTC pairs should not for everybody. The truth is, it’s in all probability not a good suggestion altogether, however when has that ever stopped an sincere betting man of excellent standing from doing the lord’s work?
Jokes apart, take this evaluation with a fist of salt.
With that out of the way in which, the Bitcoin dominance chart, which compares bitcoin’s market capitalisation to different cryptocurrencies, has damaged down from an ascending wedge, which coincides with weekly Bollinger Band resistance. Conservatively, assuming BTC.D is not going to print new lows, this presents a chance for altcoins to rally towards bitcoin till BTC.D bottoms out. Extra aggressive targets would purpose for contemporary lows under the 2018 degree marked on the chart. This chance wouldn’t be out of the extraordinary, provided that Ethereum’s EIP-1559 improve is now stay.
For sure, if BTC/USD fails to development larger, it’s possible that altcoins will endure a destiny worse than dying. And even when BTC/USD heads for larger highs, there isn’t a assure that altcoins will fare higher till new all-time highs are printed.
N.b. These write-ups take a variety of effort and time to make. I shouldn’t have a pay wall. All I ask is that you just share and like this content material on Twitter (and elsewhere) for those who discover it helpful. It helps to develop my viewers and it’s motivating to see that these newsletters are nicely acquired.
Bulls prepared the ground.
Catch you later.
Be part of the Telegram channel for stay updates & setups!
Comply with me on Twitter & Gab and my social portals under.
It’s also possible to assist me in Bitcoin!
BTC deal with: 3EydsEYpjHn68axKnCUqBB7EbqcxrEjamr
Finest regards,
Christopher Attard
Founding father of Chris on Crypto
Contributor to www.cityam.com
Join straight on: Telegram
