Bitcoin (BTC) Price to Plunge More Before Final Capitulation
Tthe past seven days have been tough on the crypto market due to several macroeconomic factors causing a plunge in several assets. Bitcoin has lost over 11% in price after being negatively impacted by the CPI data. However, the carnage is not ending soon as the short-to-long-term realized value (SLRV) ratio now indicates a lull before a bearish storm.
The Bitcoin Accumulation Zone
Bitcoin’s price action mainly depends on the movements of the long-term owners, as they alone are responsible for creating volatility in the price chart. To check Bitcoin’s supply movement, the SLRV ratio tool is used to measure the movement ratio between short-term and long-term holders to determine the future price development of Bitcoin.
Invented by Capriole Investments, a cryptocurrency investment fund, this tool identifies the nature of the crypto market using risk-on and risk-off allocations to Bitcoin. The SLRV ratio measures the percentage of Bitcoin moved in the last 24 hours relative to the percentage moved in the previous six to twelve months by long-term holders.
According to on-chain data provider Glassnode, the SLRV ratio of Bitcoin is currently in the pink zone, and the crypto king ventured into the area in June when the price bottomed out at $17,600. The SLRV ratio is below 0.04, which suggests a historical accumulation phase before starting a bearish trend.
Preparing for a downtrend
Digging further, it can be seen that Bitcoin previously entered the pink zone before joining a bull run, a pattern seen in 2018, 2015 and 2012. Therefore, it can be concluded that Bitcoin is going to follow the same historical the pattern before driving the price upwards in early 2023. The SLRV data suggests that Bitcoin will dive deep into the pink zone, resulting in more decline in the current price of $19,140 before making a bullish reversal.
To eliminate some problems associated with the SLRV ratio, Capriole Investments introduced SLRV bands that use short-term and long-term MA (moving averages) of the SLRV ratio to determine the transition of Bitcoin’s price movement.
The SLRV bands show that Bitcoin is now in a predominantly risk-off state following China’s ban on bitcoin mining. The SLRV MA-150 has been bearish since bitcoin entered the pink zone, indicating a bearish rally and no signs of reversal by the end of 2022.
The Net Unrealized Profit/Loss (NUPL) ratio of Bitcoin has also been trading lower due to low profits during the crypto winter.
As a result, bitcoin org
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Followers: 0 Show profile has entered the capitulation zone twice this year, and it appears to be the last time in the bearish phase before starting a bull run.
The founder of the blockchain company Cryptoverse, Benjamin Cowen 
Benjamin Cowen founder, CEO at Cryptoverse
Benjamin Cowen is a researcher, financial analyst, YouTuber and the founder of the “Into The Cryptoverse” analysis website and community in the United States. “Into The Cryptoverse” includes, among other things, subscription-based crypto market reporting, price research and risk analysis. Benjamin Cowen earned a Bachelor of Science degree with a minor in Mathematics and Physics from North Carolina State University in 2012. Cowen went on to earn a Master of Science in Nuclear Engineering (2015) and a Doctor of Philosophy in Nuclear Engineering (PhD.) from the University of New Mexico School of Engineering (2018). He had 720,000 subscribers and over 71 million cumulative video views as of this writing. His YouTube videos include trend analysis and price predictions, but he also occasionally posts video introductions to several cryptocurrencies. He provides the paid “Into The Cryptoverse” reports in addition to freely available analysis videos on YouTube (Premium list). Members receive weekly reports that include video updates on the state of crypto, risk analysis data, logarithmic regression analysis, price analysis, and in-depth weekly reports. ContractorCEOMarket analyst 
Followers: 0 Show profile said, “Comparing the different bear markets, you know we spend a few months sitting at about 70% down from the all-time high, and then it’s like at the end of the year, or early the next year. the last the capitulation.”
Unfortunately, this year has turned out to be disappointing for crypto investors in terms of earning power. In addition to being in the capitulation zone for the second time this year, Bitcoin has reached the sixth time in its twelve-year price history.
