Hash ribbons compare two moving averages of Bitcoin's network hash rate to identify periods when miners are shutting down operations (capitulation) and when mining activity is recovering. Created by Charles Edwards, the indicator has historically preceded significant price appreciation when recovery signals trigger.
A capitulation signal occurs when the 30-day hash rate SMA crosses below the 60-day SMA. A recovery signal occurs when the 30-day SMA crosses back above the 60-day SMA. Recovery signals have historically marked some of the best buying opportunities in Bitcoin's history.
Major recovery signals: August 2019, July 2020, August 2021, January 2023, October 2024.