 In today's video, we're going to discover the secret behind one of the most accurate, most profitable Bitcoin buy signal indicators. This indicator has just flashed a buy signal for the first time in 2023 and it's a signal that you don't want to miss. With an average return of 557%, this is not just any ordinary buy signal. But what exactly is this indicator and why is it so accurate? More importantly, can this signal be trusted and how has it done in the past? In today's video, we will break down the exact science behind this indicator and why it has recently signaled a buy for Bitcoin. So are you guys ready to find out the real potential behind one of the most profitable and accurate buy signals for Bitcoin? Let's dive in and explore this indicator to see what exactly is behind this signal and its potential impact on the price of Bitcoin. What's up guys? I am Jay and welcome to Bitcoin Daily. Remember that this content is for educational purposes only and is not financial advice. Always do your own research before risking any of your own money and as a disclaimer, I am invested in Bitcoin since 2016. So if you guys are new here, don't forget to subscribe to the channel and smash that like button. So the indicator that we will be reviewing in today's video is called the hash ribbon indicator. Just click on your indicators up here on your trading view chart, type in hash ribbons and it's going to be the first one that pops up here, the most popular one. Once added to the chart, it will look something like this and that's basically it. No other changes are needed to be made to this indicator. You're going to see different colored dots here that we're going to get more into depth soon. But first I want to talk about one of the main things behind this indicator and that's called hash rate. Hash rate also known as hash power is a measure of the computing power being used on the Bitcoin network. It represents a number of calculations that the network can perform every second. The higher the hash rate, the more powerful the network is and the more secure it is against potential attacks. It's important to note that hash rate is not just a measure of the performance of the network, but also an indicator of the health of the network. When the hash rate is high, it means that a lot of miners are actively participating in the network. And when it's low, it means that there's less minor participation. Additionally, hash rate can also be used as an indicator of the interest and adoption of Bitcoin. As more miners join the network, it means that more people are investing in Bitcoin and as a result, the hash rate increases. Now that we understand the significance of hash rate, let's take a look at its current status and its potential impact on the hash ribbons indicator. Interestingly, despite the huge declines in the price of Bitcoin and the fact that as recently as November, it was 77% below its all-time high, the network's computing power has been growing for most of 2022. In fact, a huge increase of the hash rate was observed in the first two weeks of 2023. As a result, the indicator's moving average has just recorded a new all-time high despite the fact that the Bitcoin price is currently at levels of the 2017 bull market peak. The current computing power of the Bitcoin network today is more than 20 times greater than it was just five years ago. This increase in hash rate is a positive sign for the health of the Bitcoin network and could potentially indicate that more miners are joining the network and investing in Bitcoin. However, it's important to note that the current status of hash rate alone doesn't guarantee that the hash ribbons buy signal will be accurate, but it's worth to keep in mind that the buy signal is based on the relationship between the hash rate, the price, and its moving averages. And the current increase of hash rate is definitely a positive development that could have a positive impact on the indicator. So how exactly does the hash ribbons indicator generate a buy signal? So there are three stages of the buy signal process. First, we have the miner's capitulation stage. This is when the 30-day simple moving average of the hash rate falls below the 60-day simple moving average and the hash ribbons chart turns red. This stage indicates that the miners are losing interest and confidence in the network and it's a bearish signal for the market. Next, we have the end of the capitulation stage. This is when the 30-day simple moving average of the hash rate rises above the 60 day of the simple moving average. The green dot lights up and the hash ribbons chart becomes green. This stage indicates that the miner's interest and confidence in the network is recovering and it's a bullish signal for the market. Finally, we have the recovery of the Bitcoin price momentum stage. This is when the 10-day simple moving average of the Bitcoin price rises above the 20-day simple moving average, the blue dot lights up with the signal to buy. This stage indicates that the price momentum is recovering and it's a bullish signal for the market. Now, all three stages must occur in sequence in order for the buy signal to be generated. The blue buy signal only flashes when the network hash rate and the price momentum are both recovering and it's a bullish signal for the market. So now we're going to look at how these buy signals have done historically. So if we look over the lifespan of Bitcoin's history, you can see that this buy signal has triggered multiple times, 10 times to be exact. It's worth adding that before 2015, the buy signal flashed multiple times as well, but the returns were so big that we're not going to use it for this study. So now there's two ways to interpret when you get a buy signal from the hash ribbons indicator. One is to buy for the long term because once the buy signal comes out, usually the price of Bitcoin does go up. The second way to interpret this buy signal is that the bottom for the Bitcoin price is in. In 7 out of 10 historical cases, the buy signal from the hash ribbons was indeed an indicator of the macro bottom of the Bitcoin price. Even in the three cases where this did not happen, the Bitcoin price initially surged. So if we look at the last time that we got this buy signal, you will see that it was in August of 2021 and the price went up over 57%. However, this was one of the three cases where eventually the price did drop lower than Bitcoin's price prior to the buy signal. As you can see here, the lows were these right here and in May, we can see that we broke below that. The signal before that was back in November of 2020. You'll see that it's signaled right here around $19,000 at the time. And from this point to the top, which was $64,895, the price went up 234%. We got another signal in July of 2020 at 9,300. If you got in on this signal and wrote it up to the new all-time high of $65,000, that would have been around 597%. And the one before that was in April of 2020, right after the global pandemic dropped in March. And you'll see that this was triggered at $7,700. If you took this one, wrote it to the top, that would have been 736%. And now this one here is another one of the three cases that where it signaled a buy, it did go up. You see it went up 42%. But then when the global pandemic happened, you'll see that we dropped below the lows at that point in time. And obviously, this was an exception at the time because of the circumstances. But it still initially went up. And the third and final time, which was actually the most recent buy signal, is was back in August of last year. Now you'll see that this triggered at the exact wrong time before we eventually went lower. But if you notice, this is on the daily timeframe, right, where we have this buy signal. If you swap over to the weekly timeframe, that signal was never there. So for that reason, I always look at the hash ribbons indicator on the weekly timeframe. I never look at it on the daily timeframe. So we just look at the actual buy signal and whether or not the price went up right after the buy signal, this indicator has hit on an accuracy of basically 100%. Now, if we look at it from the standpoint of whether or not it caught the macro Bitcoin bottom, this indicator has hit in seven out of 10 different signals, meaning it's hitting on an accuracy of about 70%. So now that we have analyzed the previous buy signals from this indicator and their outcomes, let's take a look at the overall average returns from these buy signals and what the potential could be for some future returns if this buy signal plays out as it has on average. If we calculate other increases from the 10 previous signals and then average them, the result is 557% move on average. That's how much Bitcoin increased on average from the bottom, preceding the signal from the hash ribbons to the top of the bull market or the very next signal. If Bitcoin were to follow this same trend, it will mean a potential return of 557% from the current price that would put the Bitcoin price at the end of this bull run at about $137,000 per Bitcoin. Now, it's important to note that these are just averages and past performance does not guarantee future results. Additionally, it's worth noting that market conditions and the overall crypto climate can have an impact on the accuracy of these signals. As always, it's important to always do your own research and make informed decisions depending on your investing goals and risk tolerance. We have seen today that the hash ribbons indicator is a powerful tool for finding the macro Bitcoin bottoms and for letting investors know when to jump back into the market. It's important to remember that the hash ribbons indicator is not a guarantee and there is never any guarantees when it comes to the cryptocurrency market. While historically it has hit 100% accuracy on the buy signal when Bitcoin's price has initially surged after the buy signal and in seven out of 10 instances it did call the Bitcoin macro bottom, you should still be cautious and mitigate your risk. 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It's important to avoid common mistakes that investors make in order to succeed in the ever-changing crypto market. That's why we have another video waiting for you where we cover the top eight mistakes that you need to avoid in 2023 and trust me you definitely don't want to make mistake number one in that video. So click the video on the screen right now so you can be better prepared for 2023 and the upcoming bull market. I'll see you guys on the next one as always peace and love.