Today we will go into detail about a Trading Indicator called Hash Ribbons. This Trading Indicator has been a rather powerful trading indicator for long-term investors (those sticking money in over the course of years and years). The overall concept related to the Hash Ribbons indicator is pegged to Bitcoin miners. There are 100s of articles and videos online that break what Bitcoin mining is down. We will discuss what exactly Bitcoin mining is in another article as well.
The Hash Ribbons indicator is explicitly looking for numerical data that shows that Bitcoin miners are in distress with the low prices and are capitulating due to the low prices. To mine for Bitcoin, there is an energy cost that can sometimes be rather expensive. Well, when the price of Bitcoin has dropped drastically, and miners are not receiving a set amount based on Bitcoin, and the energy cost is the same or gone up in price, there can be times when profits in mining are 0 or negative. Generally, that never happens, but from time to time, it can. However, most of the time, Bitcoin miners can make significant profits as this is a form of creating passive income for you. If you have feared the volatile markets that tend to come with cryptocurrencies, then learning how to make PASSIVE INCOME within crypto might be for YOU!
New Century Gold is a very new and technologically-rich cryptocurrency mining company. They focus on hosting mining rigs for the average consumer and take out all the hard work that comes with mining. YOU, as the consumer, buy the mining rig(s) through NCG and then can have them host to hold the rig within their secure warehouse for a minimal fee. The mining rig will then obtain Bitcoin from the internet that can be dispersed to your Bitcoin address once a month to the given contractual address you listed. Thus, giving you passive income every month through cryptocurrencies. This is not financial advice and should not be taken as that. But the opportunity to get into cryptocurrency on a passive income scale has now got more accessible, thanks to New Century Gold. Here is a link to their site to get started or find information today: https://ncgcoin.io
Now that we learned what New Century Gold can do for you, let’s get back to learning how Hash Ribbons can benefit you on a trading basis. As stated, Hash Ribbons go together with Bitcoin mining and have been known to show Significant Bitcoin bottoms. Hash Ribbons are not full proof for exact Bitcoin bottoms but have been very close to the bottom price and have been excellent indicators to let LONG term buyers ‘BUY THE DIP.’
We can now understand how the Hash Ribbons work within a trading tool concept. Hash Ribbons is free to use within an application called Trading View (Which many traders use today). Here I will post a picture showcasing how the Hash Ribbons work within Trading View and how it can benefit to “buy the dip,” as we say in crypto slang!
Pictured here, you can see the price movement on a Daily timeframe with the Hash Ribbons indicator positioned below. Once zoomed in on the Hash Ribbons, you can see green and blue dots above the hash rate lines. The green dots show capitalization as miners are selling heavily. Once a blue dot appears (which it doesn’t do too often), it offers a STRONG BUY signal. This buy signal usually shows an overall reversal and that Bitcoin miners are now buying and mining Bitcoin as heavily as possible. Currently, the Hash Ribbons indicator is flashing a significant BUY signal. Based on this concept, I will buy more Bitcoin and altcoins. This is NOT financial advice, but a general idea of using this indicator if you choose to. ALSO, THIS IS NOT a good indicator of when to SELL, but a great indicator to point out Bitcoin bottoms. In future articles, we will discuss other indicators that are good for selling, buying, or both!
Feel free to follow me on Twitter, as my Twitter name is listed above at the beginning of this article. Also, do not hesitate to contact New Century Gold or me if you have questions about getting involved in Bitcoin mining through them. NCG has other services you can explore through their site, which I have listed in hyperlink style a few times throughout this article.
Written by: Matt Senn