The bitcoin price metric called the 2020 Bull Run flashes again

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An “elegant” Bitcoin (BTC) metric that predicted an increase to $ 12,000 in August is optimistic for the first time since July.

As inventor Charles Edwards noted on December 3, the Hash Ribbons indicator is now signaling to buyers that they are entering the Bitcoin market.

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Hash bands post rare “blue dot”

Edwards, who is also the founder of digital asset manager Capriole, noticed similarities between Bitcoin now and before previous uptrends this year while uploading an annotated chart to social media.

“Look what I found. A blue point,” he commented and identified the new entry point.

Bitcoin hash bands chart with “blue dots”. Source: Charles Edwards / Twitter

Hash bands are based on the behavior of the Bitcoin network hash rate and are intended to tell investors when to expect the price due to upward movements.

In theory, when miners capitulate due to events like a major price correction, the hash rate drops to revive thanks to Bitcoin’s automated difficulty level adjustment. Hash bands show that around the middle of this miner’s capitulation is an optimal time to take positions.

As the saying goes, “price follows hash rate” in Bitcoin, hash bands provide technical evidence of the popular mantra.

Edwards’ “blue dot” occurs when the 30 day hash rate value exceeds the 60 day value, indicating that a recovery is in progress.

“Hash Ribbon is soon preparing for a buy signal,” continued Rafael Schultze-Kraft, CTO of on-chain analytics resource Glassnode, with another chart.

“If the hash rate recovers (30d MA exceeds 60d MA) and BTC price momentum is positive, Hash Ribbon has given excellent entry points.”

Bitcoin price table with hash bands. Source: Rafael Schultze-Kraft / Twitter

Schultze-Kraft described hash bands as “elegant” for the reliability of the indicator. In July, the time of the previous “Blue Dot” event, it took Bitcoin a few weeks to hit highs that had not been reached in over a year.