Bitcoin SLRV Ribbons Shift to Green—What Comes Next?

Recent on-chain analysis indicates that the Bitcoin ‘SLRV’ Ribbons are again signaling a positive trend. This development may have significant implications for the cryptocurrency.

Short-Term Moving Average of Bitcoin SLRV Surpasses Long-Term Average

In a recent update on social media, Charles Edwards, the founder of Capriole Investments, discussed the current movements in the SLRV Ribbons related to Bitcoin. These ribbons are derived from an indicator called the “Short-Term to Long-Term Realized Value (SLRV) Ratio.”

The SLRV Ratio gauges the balance between the Bitcoin supply relocated in the past day and that which has remained untouched for a duration of six to twelve months.

The supply older than one day reflects coins actively being traded, representing a dynamic section of the market. In contrast, the supply aged between six to twelve months signifies coins that are beginning to be held by long-term investors.

Consequently, a high SLRV Ratio indicates strong short-term trading activity compared to a lower interest in holding. In contrast, a low ratio suggests dominance from long-term holders in the market.

The SLRV Ribbons serve to highlight transitions between these two behaviors by monitoring the 30-day and 150-day moving averages of the SLRV Ratio.

Below is a chart shared by Edwards that illustrates the movement of these moving averages over recent years:

The chart indicates that the 30-day moving average of the Bitcoin SLRV Ratio has recently crossed above the 150-day moving average. Such a crossover typically signals a shift in market sentiment from long-term holding to increased short-term trading and new adoption.

As shown in the graph, this kind of crossover, highlighted in green, often precedes bullish movement in the price of the cryptocurrency. For example, a bullish rally towards the end of 2024 was associated with a similar signal.