Bitcoin (BTC) Witnesses 'Rare” Buy Signal, Could Enjoy a Massive Rally to $130,000

Crypto analyst Mikybull Crypto has revealed the return of a technical indicator that represents a buy signal for Bitcoin. Based on his predictions, the

A technical indicator that crypto analyst Mikybull Crypto closely follows has just signaled that it is time to buy Bitcoin again. According to his predictions, this could lead to a massive rally that might eventually send BTC to a price target of $130,000 as he had previously predicted.

Bitcoin price movements have been closely followed throughout the year as the flagship crypto recovered from lows of $30,000 in June. BTC price enjoyed a massive rally that saw it reach highs of nearly $68,000 before correcting to trade around $63,000 at the time of writing.

Bitcoin Witnesses “Rare” Buy Signal

In an X (formerly Twitter) post, Mikybull Crypto revealed that Bitcoin had just witnessed a rare hash ribbon buy signal. According to the analyst, whenever this happens, “an explosive rally” follows.

This is indeed bullish for BTC, as the hash ribbon flashing a buy signal suggests that the worst of the miners’ capitulation might be done or at least has cooled off. The hash ribbon indicator tracks the 30-day and 60-day moving averages of the BTC hash rate. Usually, when the 30-day MA crosses over the 60-day MA, a buy signal is triggered, suggesting that the worst of the miners’ capitulation is over and a recovery in the hash rate has begun.

Due to the Bitcoin supply they control, miners' capitulation is known to have a significant impact on the market and Bitcoin's price specifically. As reported by Bitcoinist, these miners sold over 30,000 BTC in June, which led to some of the biggest price crashes that the flagship crypto experienced this year.

The Bitcoin halving is said to have caused these miners to capitulate as their mining rewards were cut in half while also dealing with rising operation costs and a downtrend in Bitcoin’s price. However, as the hash ribbon indicator suggests, this selling pressure might be coming to an end, and Bitcoin could enjoy a massive rise from here on.

In line with this, Mikybull Crypto told his followers to get ready for a “massive rally” that could send BTC above $100,000 and to a price target of $130,000, as he had previously predicted. It is worth mentioning that crypto analyst James Van Straten also recently noted that miners’ revenue was again close to its 365-day moving average.

According to the analyst, this is another way to gauge if miner capitulation is almost over. Once miners’ revenue can reclaim the $40 million yearly average, the analyst said that Bitcoin will continue trending higher.

No Reason For BTC Investors To Panic

Another factor that has caused Bitcoin investors to panic is the potential selling pressure that could result from Mt. Gox’s Bitcoin repayments. These concerns may have contributed to the recent price correction that BTC experienced after recovering as high as $68,000. However, on-chain metrics suggest that these investors have no reason to panic.

In a recent analysis, crypto analyst OnChainSchool highlighted a massive BTC withdrawal from Kraken after Mt. Gox users began receiving their BTC. According to the analyst, this could be a bullish signal as it shows that these users are choosing to hold rather than sell their crypto tokens.

Cryptoquant’s CEO Ki Young Ju also shared a similar observation, stating that the instant dump that market participants expected from Mt. Gox creditors didn’t occur. He also suggested that any price drop that Bitcoin might be experiencing is likely due to market sentiment and not Mt. Gox selling.

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