Generational bitcoin buy signal is almost back

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The price of bitcoin has recovered decently from lows of around $ 28,888 and the annual open, but there is still some way to go to catch up to all-time highs.

A buy signal could be triggered in just a few days, according to the creator of the crypto expert and founder of Capriole Investments Charles Edwards. Not only is this buy signal important, it has a reputation for being the most profitable in Bitcoin.

Expert says generational buy signal is in the cards

Over the past few months, Bitcoin has seen one of its biggest bullish crashes on record, enough to make the market wonder if a bear market has started.

The dramatic collapse was in part caused by an exodus of miners from China and the related energy FUD. It also caused the Bitcoin hash rate to drop, which in turn brought the hash ribbons back to capitulation.

Related reading | The idea that the Bitcoin fund is widening

According to the creator of the tool, Charles Edwards of Capriole Investments, a buy signal should arrive in the course of the coming week. But what does this mean exactly? There are many buy signals in technical analysis. This can happen when there is a TD9 during a downtrend, a decisive close through the median Bollinger Band, or at a MACD cross.

A hash ribbon buy signal is expected for next week

– Charles Edwards (@caprioleio) August 5, 2021

The most profitable Bitcoin buy signal is back

However, the Hash Ribbons buy signal is the buy signal known for the most Bitcoin profits ever. The last signal of each cycle is particularly strong, reaching up to 5,000% and 3,000% return on investment in the past.

The first of the two final signals took Bitcoin from $ 20 to $ 1,200, and the second sent the cryptocurrency from $ 500 to $ 20,000 per coin and made it a household name.

Related reading | How a hammer and the golden ratio could mean 6 more months of bullish Bitcoin

What comes next could be even more dramatic with the whole world at attention. The law of diminishing returns seems to be present, and there have been more capitulation phases and buy signals than in any other cycle.

These factors could alter the final results, but the tool itself has been proven to work.

5,000% and 3,000% ROI comes from the last two signals | Source: BTCUSD on TradingView.com

Hash Ribbons are a moving average based on Bitcoin difficulty and hash rate. It is supposed to indicate when the miners gave up and started selling their coins.

If or when it arrives next week as Edwards says, it could be the start of another bullish pulse in crypto and it could be the last before the cycle ends.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC telegram. The content is educational and should not be taken as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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