A tense week has begun in the cryptocurrency market, with Bitcoin losing its $94,000 support as macroeconomic pressures intensify. Altcoin investors face gloomy days that continue through January, contrasting with the signals of recovery that differ from the last quarter of 2025. The resolution of European Union tensions and Supreme Court decisions, expected in the coming weeks, could pave the way for a resurgence in cryptocurrencies.
Understanding the Hash Ribbons Signal
The Hash Ribbons indicator monitors the total processing power in the Bitcoin network, comparing short and long-term averages. When Bitcoin’s price falls sharply, or costs rise, small miners struggle and shut down their machines, which is depicted as red vertical bars on the chart, indicating a “capitulation signal.”
According to On-Chain Mind, the graph they shared suggests the period of falling prices, fueled by forced sellers, is nearing its end. Historically, following this capitulation phase—where red areas turn into whites on the graph—Bitcoin often sees significant price increases.
The graph’s white line represents BTC prices, while the red vertical strips indicate periods where miners struggle or sell off their holdings.
“We are currently witnessing one of the largest Hash Ribbons signals ever recorded.
Hash Ribbons follow short and long-term hash rate trends, tracking miners’ stress levels. After miners capitulate and recover, this usually marks the end of forced selling.
Historically, once this phase resolves, it has been one of the most compelling long-term buy signals.” – On-Chain Mind
Should the Hash Ribbons signal herald an upswing as it has in the past, Bitcoin’s price must soon surpass the $98,000 resistance and reach the subsequent target of $101,000.
Bitcoin and Ethereum’s Prospects
DaanCrypto engaged in another of his classic Monday CME analyses. After Friday’s close, BTC returned to its closing region during the session opening, followed by larger sell-offs.
“BTC showcased a perfect weekend, ending precisely where it began when futures opened. After futures reopened, we witnessed responses to weekend news, but no gap formed.”
BTC generally tends to gravitate towards the Friday CME close during late Sunday hours.
Turning to Ethereum, Kyle highlighted five key developments;
- Average transactions over seven days are near 2.5 million, nearly doubling yearly.
- The average gas fee is approximately $0.15, the lowest in modern ETH history.
- Stablecoins now account for ~35-40% of all ETH transactions.
- Post-Fusaka + PeerDAS, L2 costs have significantly decreased.
- The gas limit has risen to 60 million, alleviating mainnet congestion.
Record activity levels and declining fees suggest an Ethereum rise as more usage scenarios emerge. Ethereum underwent such a transformation due to RWA targets. Institutions need to quickly connect traditional financial infrastructure to Ethereum.
