Bitcoin (
$110,171.00 ) (BTC) is on the road to a new bull market and should deliver serious returns in the process, fresh analysis reveals
In a tweet on April 2, Charles Edwards, founder of Bitcoin ( $110,171.00 ) and digital asset hedge fund Capriole Investments, flagged a “familiar” bull signal on the SLRV Ribbons metric.
Edwards: SLRV beginning “new trend”
SLRV Ribbons is a tool for measuring potential Bitcoin ( $110,171.00 ) profitability. Put forward by Capriole in 2022, it is based on the Short-to-Long-term Realized Value (SLRV) Ratio from well-known analyst David Puell.
The SLRV Ratio takes the percentage of the BTC supply active in the last 24 hours and compares it to that last active 6-12 months ago. The result shows how comparatively 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 likely price trajectory, but over time, such supply values may change, Edwards argues.
Related: Crypto winter can take a toll on hodlers’ mental health
SLRV Ribbons attempts to address this by analyzing the interplay between two moving averages. When its short-term 30-day MA crosses over the long-term 150-day MA, Bitcoin ( $110,171.00 ) is at the start of a bullish phase.
The metric “is about as simple as gets” when it comes to reliable Bitcoin ( $110,171.00 ) analytics tools, Edwards explained in an introductory blog post, and is currently repeating classic bullish behavior with a crossover taking place in early 2023.
“A new trend in SLRV ribbons, and it looks familiar,” he summarized.
Bitcoin ( $110,171.00 ) SLRV Ribbons annotated chart. Source: Charles Edwards/ Twitter
While relatively new, Edwards added that SLRV Ribbons had been backtested to show both its reliability and capability to improve BTC investment returns versus buying and holding.
Bitcoin ( $110,171.00 ) is still “cheap”
SLRV is not the only Bitcoin ( $110,171.00 ) metric giving Edwards a sense of deja vu this month.
Related: BTC price targets fix on $35K as Bitcoin ( $110,171.00 ) eyes ‘massive’ liquidity squeeze
The Bitcoin ( $110,171.00 ) Yardstick, previously covered by Cointelegraph, reveals a recovery in Bitcoin ( $110,171.00 ) market cap versus hash rate but still classes BTC as “cheap” at current prices.
“The Bitcoin ( $110,171.00 ) Yardstick is painting a very familiar signature to the 2019 lows,” he commented on March 31.
After exiting the “cheap” zone early that year, BTC/USD then only saw one brief return during the March 2020 COVID-19 cross-market crash.
Bitcoin ( $110,171.00 ) Yardstick chart. Source: Charles Edwards/ Twitter
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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