An "elegant" Bitcoin (BTC) metric that predicted its run to $12,000 in August has flashed bullish again for the first time since July.

As noted past creator Charles Edwards on Dec. 3, the Hash Ribbons indicator is at present signaling for buyers to enter the Bitcoin market place.

Hash ribbons postal service rare "blue dot"

Uploading an annotated nautical chart to social media, Edwards, who is as well the founder of digital asset managing director Capriole, noted similarities between Bitcoin at present and earlier the previous bullish upticks throughout this year.

"Expect what I found. A blue dot," he commented, identifying the new entry bespeak.

Bitcoin hash ribbons chart with "bluish dots." Source: Charles Edwards/ Twitter

Hash ribbons are based on Bitcoin'south network hash rate behavior and designed to tell investors when price is due to feel upside.

In theory, when miners capitulate due to events such as a major toll correction, hash rate declines, only to revive thank you to Bitcoin's automatic difficulty readjustments. Hash ribbons demonstrate that around midway through this miner capitulation is an optimal fourth dimension to take positions.

As the saying goes, "Price follows hash rate" in Bitcoin, hash ribbons lend technical proof to the pop mantra.

Edwards' "bluish dot" occurs when the 30-day hash charge per unit value crosses the lx-day value, indicating a recovery is underway.

"Hash Ribbon is setting upwards for a buy point soon," Rafael Schultze-Kraft, chief technical officer of on-chain analytics resource Glassnode, continued with a further chart.

"When hash rate recovers (30d MA crosses above 60d MA) and BTC cost momentum is positive, Hash Ribbon has given fantabulous entry points."
Bitcoin cost nautical chart with hash ribbons. Source: Rafael Schultze-Kraft/ Twitter

Schultze-Kraft described hash ribbons as "elegant" for the indicator'south reliability. In July, the fourth dimension of the previous "blue dot" consequence, Bitcoin took a thing of weeks to post highs non seen in over a year.

Bitcoin coils upward beneath $20,000

The signal comes as Bitcoin continues to range below $20,000, having seen considerable volatility while getting rejected at but above all-fourth dimension highs.

Major selling pressure level remains, while conversely, successfully overcoming resistance would give Bitcoin a clean sweep to the likely next level of resistance at $22,000, substitution orderbook data shows.

At press time, BTC/USD circled $nineteen,300, having been unable thus far to retake $19,500.