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Bitcoin price flagged a “familiar” bull signal and should deliver serious returns in the process

Charles Edwards, the founder of Bitcoin and digital asset hedge firm Capriole Investments, reported a “familiar” bull signal on the SLRV Ribbons indicator in a tweet on April 2. As a result, the Bitcoin price is on its way to a new bull market and should provide substantial rewards.

SLRV Ribbons is a technique for estimating Bitcoin profitability. Capriole proposed it in 2022 and is based on well-known analyst David Puell’s Short-to-Long-term Realized Value (SLRV) Ratio.

The SLRV Ratio compares the percentage of BTC supply active in the current 24 hours to that active 6 – 12 months ago. The outcome indicates how active short-term and long-term supply is at a specific point.

According to Edwards, an investor can acquire insight into both emotions and the future price trend, but such supply values may alter over time.

SLRV Ribbons addresses this by examining the interaction of two moving averages. Bitcoin enters a bullish trend when its short-term 30-day MA crosses its long-term 150-day MA.

According to Edwards in an introductory blog post, the measure “is about as easy as it gets” regarding dependable Bitcoin analytics tools. It is now replicating classic bullish behavior with a crossover in early 2023.

“A new trend in SLRV ribbons, and it looks familiar,” he concluded.

bitcoin-price-flagged-a-familiar-bull-signal-and-should-deliver-serious-returns-in-the-process

Bitcoin SLRV Ribbons annotated chart | Source: Charles Edwards/ Twitter

Despite its youth, Edwards claims that SLRV Ribbons have been backtested to demonstrate their dependability and capacity to boost BTC investment returns over buying and holding. SLRV isn’t the only Bitcoin measure that has Edwards feeling nostalgic this month.

bitcoin-price-flagged-a-familiar-bull-signal-and-should-deliver-serious-returns-in-the-process[1]

Bitcoin Yardstick chart | Source: Charles Edwards/ Twitter

The Bitcoin Yardstick, which Cointelegraph previously highlighted, shows a recovery in Bitcoin market cap versus hash rate but still classifies BTC as “cheap” at present pricing. Following its withdrawal from the “cheap” zone earlier that year, BTC/USD only briefly returned during the March 2020 COVID-19 cross-market meltdown.

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