Hash Ribbons

Hash ribbons is an on-chain indicator that tracks periods of miner capitulation — when a meaningful share of miners shut down operations, typically because falling prices have made mining temporarily unprofitable — by comparing a shorter-term moving average of network hash rate (see Kaavon's "Hash Rate" glossary definition) against a longer-term moving average. When the shorter-term average drops below the longer-term one and later crosses back above it, the indicator signals that the period of miner capitulation has likely ended and weaker miners have been shaken out.

Some analysts have historically associated the end of a hash ribbons miner-capitulation signal with periods that preceded favorable price performance, on the theory that clearing out weaker, less efficient miners can mark a healthier, more sustainable point in the network's mining economics — but like other historically pattern-based indicators, hash ribbons reflects a correlation observed across a limited number of past cycles rather than a guaranteed or mechanically reliable predictive signal.