Analyst: Hash rate signal that preceded Bitcoin's recent 100% rally will soon appear

The Bitcoin hash rate dove strongly in late October.

Bitcoin transactions subsequently became slow as block times naturally increased.

Worrying some investors, the "Hash Ribbons," a custom indicator that tracks movements in the hash rate, had printed a "Capitulation" signal for the first time since the halving.

Bitcoin Hash Ribbons may soon print a "Buy".

The Bitcoin hash rate has bounced 60-70 percent from the local lows, recovering as Chinese miners finish accounting for the end of the wet season, and thus the end of extremely cheap hydroelectricity.

The indicator last printed a "Buy" in summer, prior to the rally from the $8,000s to the $16,000 highs where Bitcoin is today.

Should history rhyme, the Hash Ribbons printing a "Buy" should precede a Bitcoin rally to new all-time highs and beyond.

Fundamental trends are also set to drive Bitcoin higher.

Catalyzing renewed demand for Bitcoin are institutional investors, which are increasingly buying and promoting the leading cryptocurrency.

"Bitcoin has a lot of attraction as store of value to both millennials and new West Coast money I own many many more times gold than Bitcoin but frankly if the gold bet works the Bitcoin bet will probably work better because it's thinner, more illiquid and has more beta to it."