On-chain data shows the Bitcoin ‘SLRV’ Ribbons have recently once again been giving a green signal. Here’s what this could mean for the asset.
Short-Term MA Of Bitcoin SLRV Has Crossed Above The Long-Term
In a new post on X, Capriole Investments founder Charles Edwards has discussed the latest trend in the SLRV Ribbons for Bitcoin. The SLRV Ribbons are based on an on-chain indicator known as the “Short-Term to Long-Term Realized Value (SLRV) Ratio.”
The SLRV Ratio measures the ratio between the Bitcoin supply that was moved within the past 24 hours and that dormant since at least six and at most twelve months ago.
The supply younger than 24 hours corresponds to the part of the cryptocurrency that’s becoming actively involved in trading. That is, the part of the supply that’s constantly in motion. Meanwhile, the 6 to 12 months old supply represents the coins that have just matured into the domain of the HODLers.
As such, whenever the SLRV Ratio has a high value, it signifies that short-term trading interest in the asset is high compared to the appetite for HODLing. Conversely, a lower value can indicate that long-term holder behavior dominates the sector.
The SLRV Ribbons, the actual indicator of focus here, make it easier to identify when a shift is occurring from one behavior to the other. It accomplishes this by tracking the 30-day and 150-day moving averages (MAs) of the SLRV Ratio.
Now, here is the chart for the indicator shared by Edwards that shows the trend in these MAs over the last few years:
As displayed in the above graph, the 30-day MA of the Bitcoin SLRV Ratio has recently crossed above the 150-day MA. This type of crossover is generally a sign that the market is moving away from HODLing to short-term trading and fresh adoption.
From the chart, it’s apparent that such a crossover (highlighted in green) typically leads to some degree of bullish action for the cryptocurrency’s price. The bull rally from the last few months of 2024, for example, followed this signal.
The reverse type of crossover, where the 30-day MA falls under the 150-day one, is likewise a bearish signal. When this crossover occurs, it indicates that interest in the asset is waning from new investors, leaving only the more resolute hands to continue quietly accumulating.
With the SLRV Ribbons once again forming a bullish crossover, it remains to be seen whether this pattern will hold for the asset this time.
BTC Price
Bitcoin fell under the $107,000 mark during the weekend but appears to have kicked off the new week with recovery, as its price is now back at $110,000.
