Crypto glossary
Hash Ribbons
Hash Ribbons is a bitcoin indicator that compares 30-day and 60-day averages of hashrate to spot miner capitulation and the recovery that follows.
Created by analyst Charles Edwards in 2019, Hash Ribbons tracks two simple moving averages of network hashrate. When the 30-day average falls below the 60-day one, hashrate is declining, typically because miners with unprofitable machines are switching off. The indicator reads this as capitulation. When the short average crosses back above the long one, miners are returning and the stress is easing.
Some versions add a price-momentum condition and flag a buy signal only when the recovery coincides with price turning up. Historically, the signal appeared near several cycle lows, such as after the 2018 bear market and the March 2020 crash, which made it popular in market commentary. Capitulation often happens after halvings or sharp price drops.
Like any indicator based on a few historical cycles, its track record is limited and signals can come early or late. Hashrate estimates are noisy and affected by curtailment, weather and large miners going offline for reasons unrelated to profitability, such as China's 2021 mining ban. It is best read as context about miner stress, not as a trading rule.
Example
After a halving, the 30-day hashrate average dips below the 60-day for six weeks as older ASICs are switched off; when it crosses back up, analysts note that miner capitulation appears to be over.