Bitcoin Hash Ribbon Buy Signal Flashes as Miner Recovery Sparks Bullish Outlook

Bitcoin has activated a rare 'Hash Ribbon' buy signal, according to on-chain analyst Charles Edwards, as the network's hashrate surges to an all-time high. The signal appears as the 30-day moving average of the hashrate crosses above the 60-day line, indicating a potential shift from miner capitulation to stabilization. This is the first such signal in over six months.

The price of Bitcoin has rebounded from late-December lows near $81,000, retaking the $93,000 level. This comes as the network's total hashrate exceeds 1.068 billion TH/s, a record level that underscores growing miner confidence. Charles Edwards notes that this crossover typically precedes extended bullish trends.

Bitcoin's recent price action has been supported by a broader stabilization in mining operations. The Hash Ribbon indicator, developed by Edwards, tracks miner stress and recovery by comparing short- and long-term hashrate averages. A crossover from below to above the 60-day line often signals the end of miner exits and the beginning of a more stable environment.

Why Did This Happen?

Bitcoin's hashrate crossover follows months of volatility and miner consolidation. Earlier in the year, miners faced significant pressure due to falling prices and reduced profitability, leading many to shut down operations. The drop in hashrate during this period marked a phase of 'miner capitulation.' Now, the rising hashrate indicates that miners are returning to the network, suggesting a healthier ecosystem.

The indicator has historically preceded major price rallies. For example, the 2020 surge to $65,000 and the 2023 recovery from $16,000 both followed similar crossovers. While the current environment differs—Bitcoin is now well off its lows— this signal still validates a strengthening trend.

How Did Markets React?

The activation of the Hash Ribbon buy signal comes at a time of growing institutional interest in Bitcoin. Spot ETFs have gained traction in 2026, with $1.2 billion in inflows in the first week of the year. This has helped solidify Bitcoin's position as a viable asset for institutional portfolios. Morgan Stanley's recent entry into the crypto space further reinforces this trend.

Bitcoin ETFs now hold more than $115 billion in assets, with ether ETFs surpassing $20 billion. This institutional backing has helped reduce volatility and provided a buffer for market corrections. Analysts suggest that strong ETF inflows could continue to support Bitcoin prices, even if the broader market experiences fluctuations.

What Are Analysts Watching Next?

Bitcoin's next key price level is $100,000, a psychological target that could attract further buying interest. The $107,000 level acts as a near-term resistance, while the $124,000 level marks a potential breakout threshold. Analysts are closely watching for a sustained move above $100,000 as a sign of broader market confidence.

Beyond price levels, investors are monitoring miner behavior and hashrate trends. A sustained increase in mining activity could reinforce the bullish case for Bitcoin, particularly if it aligns with broader market stability. On the other hand, any signs of renewed miner exits could signal a return to bearish conditions.

Goldman Sachs also highlights regulatory developments as a key catalyst for institutional adoption. The bank notes that regulatory clarity, rather than uncertainty is the top driver of crypto investment. With a proposed U.S. crypto market structure bill expected to pass in 2026, institutional interest could see further acceleration.