Hash Ribbons

Bitcoin Hash Ribbons track the health of the mining network by plotting two moving averages of Bitcoin's hash rate: a fast 30-day moving average and a slower 60-day moving average. Hash rate measures the total computational power miners commit to securing the network, so a sustained decline in these averages reflects miners powering down unprofitable machines, while a rising hash rate reflects capacity coming back online.

The signal lives in the relationship between the two lines. When the 30-day moving average falls below the 60-day, the network is in a period of miner capitulation: hashing power is contracting as weaker miners are forced offline. When the 30-day average crosses back above the 60-day, it marks the recovery, indicating that mining conditions have stabilized and capacity is expanding again. Watching the spread between the two ribbons shows how deep a capitulation ran and how firmly the recovery has taken hold.

Use the upward 30MA-over-60MA crossover as the recovery confirmation. Historically this cross has often coincided with miner recovery and potential bullish momentum for Bitcoin, since the end of capitulation tends to align with the network working through a period of stress. Treat the crossover as a regime signal about miner behavior rather than a precise price target.

Check the selected asset, units, and cohort before comparing readings. Compare the metric over consistent dates and use related measures to understand what contributes to a change.