The most significant confirmation that Bitcoin is about to begin a new bull run could arrive as soon as tonight’s daily and weekly close.
Post-Halving BTC: Will 2020 Be The Year of The Bull Market Returns?
2020 is gearing up to be the year of Bitcoin.
All eyes were on the cryptocurrency to start out the year. BTCUSD rose from December 2019 lows around $6,500 to as high as $10,500 in a matter of weeks.
The ascent was fueled by pre-halving hype – a now-past event that reduced the block reward miners receive for powering the network.
The 12.5 BTC reward was slashed to just 6.25 BTC, but required the same amount of energy to validate each block. It’s only the reward that shrinks.
When the cost of production far outweighs the profit generated in BTC, miners capitulate and turn off their energy-hungry machines.
Related Reading | An Explosive BTC Price Movement May Not Arrive, Concerning Data Shows
Due to this, the longer-term impact the May 2020 halving could have on miners and their profit margins is significant and not fully understood.
But before the highly anticipated day could arrive, the early 2020 rally was cut short due to the pandemic and resulting market selloff.
Bitcoin price collapsed, however, the remaining halving hype brought prices back to $10,000 quickly. Investors expected it to spark the next bull market.
Now the event has passed, the cryptocurrency has been trading sideways waiting for an important signal to trigger.
That day very well could be today, if Bitcoin price closes tonight’s daily and weekly candle above $9,230.
A #Bitcoin Hash Ribbon “buy” signal is 𝗳𝗼𝗿𝗺𝗶𝗻𝗴 today.
If price closes this daily above ~9230, it will be confirmed.
— Charles Edwards (@caprioleio) July 12, 2020
Most Profitable Signal Ever: Hash Ribbons To Signal Buy With Bitcoin Price Close Above $9230
If Bitcoin price can then end the day above the level, it will trigger a “buy” signal on the Hash Ribbons indicator, according to Bitcoin expert Charles Edwards.
The tool turns mining difficulty and hash rate into moving averages that can signal when miners are capitulating. When this is over, the indicator will give a buy signal.
Throughout Bitcoin’s history, there’s never been a more profitable buy signal.
BTCUSD Hash Ribbons Daily | Source: TradingView
Working backward, the last time this signal triggered was following Black Thursday before Bitcoin rocketed to over $9,000.
Prior to that, the buy signal sparked the early 2020 rally to over $10,000.
The signal before that resulted in nearly 300% returns and took Bitcoin to $14,000.
And before that, the signal resulted in over 2,000% ROI and the cryptocurrency’s rise to its all-time high. This buy signal followed the asset’s 2016 halving – and was the last signal before the historic crypto bull market started.
On average, the Hash Ribbons buy signal are among the most profitable in the cryptocurrency space. It also has resulted in minimal drawdown after the signal triggers.
The tool signaling “buy” today could suggest that Bitcoin price won’t remain under $10,000 very long. And once it breaks above the key level, it may never again look back at prices less than five digits.
This all could start with a close tonight of over $9230 in BTCUSD.