The Bitcoin community has been clamoring for Bitcoin to close the year at $100,000 or above. But with the many negative hits the market has taken, the former is still just as attractive for investors and traders alike. Surprisingly, Bitcoin seems to have the potential to surge even higher, thanks to a new signal spotted by on-chain observers.
Bitcoin could shake up the market by raking in 258% worth of gains
The Hash Ribbon indicator which was developed by Bitcoin proponent Charles Edwards is a long-term signal that gives significant insight into the price of Bitcoin. In the past, this indicator spots times and periods where buying the dip for long-term trades is profitable.
The indicator is classified as part of the fundamental indicators seeing as the Bitcoin hash rate is the result of network activity. As spotted by the analyst, the indicator is currently reflecting blue; a signal that market players interpret as a “buy signal.”
Previous data show that this could send the market to new highs, as it did in the years before. If previous market patterns are imitated, Bitcoin could hit $157,000 in the long term.
As noted by the analyst:
“Hash Ribbon has flashed blue and that means BUY!The last time it flashed blue Bitcoin went up +258%. That would take Bitcoin to $157K. IF we repeated those gains from here.”
An excited Charles also took to Twitter to alert market players that “the biggest long term Bitcoin buy signal [Hash Ribbon Indicator] is now firing.”
Why another Bitcoin breakout is significant
Meanwhile, at press time, Bitcoin is up from last week. Analysts seem unfazed by the unattained all-time high, especially because Bitcoin has successfully retained its new price levels above $40,000.
Having successfully built a base price at that mark, the short-term downtrend may do little to nothing to pull Bitcoin down, as on-chain indicators continue to outline factors that are more likely to push Bitcoin upwards. All eyes are focusing on the next breakout; which is a collective $50,000. Once this milestone is attained, half the work to $100,000 is done.
On the other hand, we see on-chain expert Williams Clemente, reckoning that the market is currently witnessing the largest divergence between the price of Bitcoin and on-chain fundamentals. Glassnode also notes a rather bizarre trend of the Bitcoin market recording zero significant increase in old coins, despite Bitcoin’s price upswing to $45,000.