What Is the “Hash Ribbons Indicator” and How Is It Used by Traders after a Halving?

The Hash Ribbons Indicator is a tool that uses two simple moving averages of the Bitcoin hash rate to identify periods of miner capitulation. When the shorter moving average crosses below the longer one, it signals that miners are turning off machines due to unprofitability, often following a halving or price crash.

Traders interpret the subsequent cross-back (when the short MA rises above the long MA) as a signal that the worst of the miner sell-off is over, historically marking good buying opportunities.