Bitcoin's hash ribbon buy signal: how good is it?

A look at the performance of the hash ribbon indicator

Bitcoin's hash ribbon indicator recently flashed a buy signal.

This relatively rare event is considered by Bitcoin investors to be a great buying opportunity.

But is that really the case? Should you go long on Bitcoin based on the most recent buy signal?

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Bitcoin's hash ribbon buy signal: how good is it?

The takeaway

The Bitcoin hash ribbon buy signal is a rare event, occurring only about twice a year. While it doesn't consistently yield the highest returns, it has historically been effective at:

1. Identifying potential market bottoms

2. Reducing the risk of significant losses compared to random buying