The hash ribbons indicator evaluates market sentiment and potential miner capitulation by using the one-month and two-month of Bitcoin’s hash rate.
Whereas, the Hash Rate indicator is calculated based on the number of mined blocks (by Miners). It represents the speed at which activities can be completed within the Bitcoin code.
Each halving, this dramatically increases which is speculated and evidently causes the price to rise. The higher the miners' hash rate, the faster the ability to mine becomes therefore being more profitable. There is a close relationship between the USD valuation and the
Hash Rate as miners will reduce their mining power when an opportunity to get better results elsewhere occurs.
This happens either because of an increase in mining costs or the price of Bitcoin decreases.
The correlation is the Hash-Rate bottoming alongside a local bottom for Bitcoin's price. This is only a speculation of how it works, it should not be used entirely to build a bias. Do your own research please, I hope you've enjoyed reading this post!