Bitcoin just saw one of its most powerful and accurate trading indicators give the "buy" signal...

If you only followed this one tool when you traded bitcoin you would have made phenomenal returns.

Yes, if you had just bought bitcoin back in 2010 and held until now, you would have also made phenomenal returns.

However, since we can't go back in time the best thing we can do now is pay attention the trading signals that have yielded the highest returns with the greatest accuracy.

Thinking in those terms, it's hard to beat the Hash Ribbons trading strategy.

It was developed and championed by one Charles Edwards back in 2019 and it basically is just the 1-month SMA of Hash Rate crossing over the 2-month SMA of Hash Rate.

Sounds simple enough right?

The reason this has often worked is because it measure miner capitulation and miner capitulation is very much tied to the price if bitcoin. This simple crossover has often signaled that the worst of the miner capitulation is typically over, and the recovery has begun.

Buying at these points of time yields incredible results as shown below:

(Source: https://medium.com/capriole/hash-ribbons-bitcoin-bottoms-60da13095836)

Much of that data comes from several years back, when the returns were much greater than they are today, at least in percentage terms.

However, looking at that data there is no denying the significance.

The good news?

We just saw a Hash Ribbon cross right now...

In fact, it actually just triggered today:

(Source: https://cointelegraph.com/news/bitcoin-hash-ribbon-signal-confirms-great-bull-run-says-analyst)

Simply based on the historical data, this is hugely bullish.

In fact, based on that chart above:

"Of the 9 historic buy signals, the average gain to the next market cycle peak (historically less than 3 years away) is over 5000%."

(Source: https://medium.com/capriole/hash-ribbons-bitcoin-bottoms-60da13095836)

Keep in mind that recent triggers in 2019/2020 have likely dropped those overall returns slightly, but you get the overall them...

The best part in all of this is that you don't have to think or worry about any other indicator. You just buy based on this signal triggering and collect your money in a couple years.

Those outstanding returns were achieved without considering any other indicators, metrics, or intelligence. They were just based on two simple moving averages on Bitcoin’s Hash Rate.

Pretty cool eh?

Bring on the returns Hash Ribbons!

Stay informed my friends.

-Doc

Posted Using LeoFinance