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.

In a new post on X, Capriole Investments founder Charles Edwards has talked about the latest trend in the SLRV Ribbons for Bitcoin.

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 for Capriole, crypto analyst Charles Edwards has covered 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.” This indicator 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.

On the other hand, the 6 to 12 months old supply represents the coins that have just matured into the domain of the HODLers.

As such, a high value for the SLRV Ratio can be interpreted as high interest in the asset from those involved in short-term trading compared to those focused on long-term holding. Contrarily, a low reading for the indicator can be seen as an indication that long-term holder behavior is dominant in 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 does so 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:

(Chart Credit: Charles Edwards, Capriole)

As displayed in the above graph, the 30-day MA of the Bitcoin SLRV Ratio has crossed above the 150-day MA recently. 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) usually leads into some degree of bullish action for the cryptocurrency’s price. The bull rally from the last couple of 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 cross takes place, it means interest in the asset is waning from new investors, leaving only the most resolute hands to continue quietly accumulating.

With the SLRV Ribbons once again forming a bullish crossover, it now remains to be seen whether the pattern would hold for the asset this time as well.

Bitcoin Price Technical Analysis

The price of Bitcoin hovered around the $107,000 mark as of Sunday morning. The cryptocurrency had a turbulent week, largely driven by macroeconomic cues.

After a brief touch of the $100,000 level earlier in the week, Bitcoin attempted a recovery towards the $110,000 mark but faced resistance. This brought the coin back down to around $104,000 by Wednesday.

However, a strong recovery followed, pushing the price past $108,000 and aiming for another test of the $110,000 level. This rally was fueled by an increase in BTC futures trading volume on Deribner, a sign of renewed interest from institutional traders.

As Bitcoin breached the $110,000 mark, it encountered selling pressure, leading to a minor pullback. Nonetheless, the coin remained in the green on a weekly basis, with gains of over 7%.