Bitcoin ( BTC ) should see an “explosive rally” next as miners exit their latest capitulation period.

The latest data from the hash ribbons indicator shows that the BTC price now in long-term “buy” territory for the first time since mid-May.

Bitcoin miner "capitulation" over, says hash ribbons data

Bitcoin hash ribbons track two moving averages of hashrate — the estimated combined processing power miners dedicate to the network.

When the 30-day moving average drops below its 60-day equivalent, it suggests miners are struggling. When the opposite occurs, however, a historically reliable buy signal is generated and considerable BTC price upside can follow.

Bitcoin hash ribbons. Source: Capriole Investments

“Given the dominant role of miners in securing Bitcoin supply, through history 'Miner Capitulations' (30 DMA of Hash Rate < 60 DMA of Hash Rate) have been volatile periods for price, often syncing with major price discounts and long-term opportunities,” hash ribbons’ creator, Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, explains.

On July 23, the indicator exited “capitulation” for the first time in over two months. As Cointelegraph reported , the last exit came in August 2023, when BTC/USD traded at under $30,000.

“BTC just witnessed a rare hash ribbon 'Buy' signal,” popular trader Mikybull Crypto wrote in a reaction on X alongside price analysis.

“Whenever this happens, an explosive rally follows.”
BTC/USD chart with hash ribbons data. Source: Mikybull Crypto/X

Mikybull Crypto added in a separate post that traders should “get ready for a massive rally.”

Raw data from monitoring resource MiningPoolStats put Bitcoin hashrate at 676 exahashes per second (EH/s) as of July 22.

Bitcoin hashrate raw data. Source: MiningPoolStats

BTC price upside pauses

BTC price action meanwhile finds itself in a state of flux on lower timeframes after a recovery that initially lifted the market past $68,000.

Related: Bitcoin trader warns of local BTC price top after $530M ETF inflows

Sell-side concerns remain, stemming from ongoing payouts to creditors of defunct exchange Mt. Gox and market reception of the United States spot Ether ( ETH ) exchange-traded funds (ETFs).

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.