Bitcoin copies ‘known’ price trend in 2023, two more calculations show
Bitcoin (BTC) is headed for another bull market and should deliver serious returns in the process, recent analysis reveals
In a chirping On April 2, Charles Edwards, founder of Bitcoin and digital hedge fund Capriole Investments, flagged a “familiar” bull signal on the SLRV Ribbons metric.
Edwards: SLRV begins “new trend”
SLRV Ribbons is a tool for measuring potential Bitcoin profitability. Proposed by Capriole in 2022, it is based on the Short-to-Long-Term Realized Value (SLRV) Ratio of well-known analyst David Puell.
The SLRV ratio takes the percentage of BTC supply that was active in the last 24 hours and compares it to the last active 6-12 months ago. The result shows how relatively active short-term supply and long-term supply are at a given point.
From this, an investor can gain an insight into both sentiment and the likely price path, but over time such offer values can change, claims Edwards.
Related: Crypto winter can take a toll on hodlers’ mental health
SLRV Ribbons tries to solve this by analyzing the interaction between two moving averages. When its short-term 30-day MA crosses above the long-term 150-day MA, Bitcoin is at the start of a bullish phase.
The calculation “is about as simple as it gets” when it comes to reliable Bitcoin analysis tools, Edwards explained in an introductory blog post, currently repeating classic bullish behavior with a crossover taking place in early 2023.
“A new trend in SLRV tapes, and it looks familiar,” he summarized.
Although relatively new, Edwards added that SLRV bands had been re-tested to show both their reliability and ability to improve BTC investment returns versus buying and holding.
Bitcoin is still ‘cheap’
SLRV isn’t the only Bitcoin metric giving Edwards a sense of deja vu this month.
Related: BTC Price Target Fixes at $35K as Bitcoin Sees ‘Massive’ Liquidity Pressure
Bitcoin Yardstick, previously covered by Cointelegraph, reveals an improvement in Bitcoin market cap versus hash rate, but still classifies BTC as “cheap” at current prices.
“Bitcoin Yardstick paints a very familiar signature to the 2019 lows,” he commented on March 31.
After leaving the “cheap” zone early that year, BTC/USD only saw one brief return during the March 2020 COVID-19 cross.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
