The Hash Ribbons signal, which began flashing on June 25, has now completed.

This points to a potential shift in Bitcoins mining and price cycle as the leading crypto asset saw a steep decline of 3% over the past day.

Hash Ribbons End After Miner Stress

According to the latest analysis shared by CryptoQuant, the indicator triggers when the 30-day moving average of Bitcoins hash rate falls below the 60-day average, and signifies stress among miners who may struggle to cover operational costs.

This pressure can push miners to switch off unprofitable rigs or pause their operations for a while, and at times, it forces them to sell Bitcoin to stay afloat.

Historically, the Hash Ribbons indicator has tended to appear near the end of miner sell-offs, and often sets the stage for Bitcoins bullish phases while allowing for some market fluctuations. This most recent signal ended as the networks hash rate began recovering, as the 30-day moving average climbed back above the 60-day average, which hinted at a stabilization in mining activity.

Interestingly, the last occurrence was on June 5, as Bitcoin was nearing the $100,000 level. While short-term corrections are still possible, CryptoQuant stated that the past cycles have shown that investing during these signals often aligns with effective entries, as miners complete their capitulation and the hash rate begins to recover.

Bitcoin Hash Rate Hits 1.03 ZH/s

Bitcoins network hash rate surged to a record 1.0322 zettahashes per second (ZH/s) on July 15, as per data compiled by Bitinforcharts. This milestone came after a steep drop to around 658 EH/s on June 24, as a severe summer heat wave strained the US power grid and forced many miners, particularly in heat-sensitive areas, to scale back or temporarily halt operations.

Some market watchers had previously pointed to Iran as a possible reason behind the sharp hash rate drop, though the connection appears weak. Iran hosts large-scale Bitcoin mining operations, and certain reports reveal that state-backed entities like the Islamic Revolutionary Guard Corps may contribute to local power outages.