TThe past seven days have been difficult in the cryptocurrency market due to several macro-economic factors that have caused many assets to decline. Bitcoin lost more than 11% in its price after being negatively affected by the CPI data. However, the bloodbath does not end soon as the chain’s short-to-long-term realized value (SLRV) ratio now points to a silent phase before a downward storm.
Bitcoin Accumulation Zone
Bitcoin price movement depends mainly on the long-term movements of its holders, as they are solely responsible for creating fluctuations in the price chart. To check the movement of Bitcoin supply, the SLRV ratio tool is used to measure the ratio of movement between short- and long-term Bitcoin holders to determine future price developments for Bitcoin.
invented it Capriol Investments, a cryptocurrency investment fund, this tool determines the nature of the cryptocurrency market by leveraging the risk allocation and risk-off in Bitcoin. The SLRV ratio measures the percentage of bitcoin that was moved in the past 24 hours in relation to the percentage that was moved over the previous six to twelve months by long-term holders.
According to the on-chain data provider, glassBitcoin’s SLRV ratio is currently in the pink, and the crypto king ventured into the region in June when its price touched a bottom at $17,600. The SLRV ratio is below 0.04, indicating a historical accumulation phase before the start of a downtrend.
Prepare for a downtrend
Further research, it can be seen that Bitcoin previously entered the pink zone before joining an upward movement, a pattern seen in 2018, 2015 and 2012. Therefore, it can be concluded that Bitcoin will follow the same historical pattern before driving its price higher by the beginning of 2023. Data SLRV suggests that bitcoin will dive deep into the pink zone, leading to a further decline at its current price of $19,140 before making a bullish reversal.
To eliminate some of the issues with the SLRV ratio, Capriole Investments introduced SLRV bars that use short-term and long-term moving averages to the SLRV ratio to determine the transmission of Bitcoin’s price movement.
The SLRV strips show that Bitcoin is now in a risk-free state following China’s ban on Bitcoin mining. The SLRV MA-150 has been in a downtrend since bitcoin entered the pink area, indicating a bearish rally and no signs of any reversal by the end of 2022.
Bitcoin’s Unrealized Net Profit/Loss (NUPL) ratio has also been trading lower due to lower earnings during the crypto winter.
As a result, Bitcoin Bitcoin org event organizertechnologyfall due Followers: 0 View profile It entered the capitulation zone twice this year, and it appears that this is the last time for the downside phase before embarking on an uptrend.
Cryptoverse founder, Benjamin Cowen Benjamin Quinn Founder and CEO In Cryptoverse
Benjamin Quinn is a researcher, financial analyst, YouTuber, and founder of the analytics website Into The Cryptoverse and community in the United States. “Into The Cryptoverse” includes, among other things, subscription-based crypto market reports, price research, and risk analysis. Benjamin Quinn earned a Bachelor of Science with a minor in Mathematics and Physics from North Carolina State University in 2012. Quinn received a Master of Science in Nuclear Engineering (2015) and a Doctor of Philosophy in Nuclear Engineering (PhD). From the University of New Mexico School of Engineering (2018). It has 720,000 subscribers and over 71 million cumulative video views as of this writing. His YouTube videos include trend analysis and price predictions, but he also occasionally posts video introductions to various cryptocurrencies. Delivers paid “Into The Cryptoverse” reports as well as analytical videos that are freely available on YouTube (premium list). Members receive weekly reports that include, among other things, video updates on crypto status, risk analysis data, logarithmic regression analysis, price analysis, and comprehensive weekly reports. entrepreneurchief executive officerMarket Analyst Followers: 0 View profile “Compared to different bear markets, you know, we spend a few months down about 70% from their all-time high, and then it’s like at the end of the year, or at the beginning of the next, that final capitulation.”
Unfortunately, this year has turned out to be disappointing for cryptocurrency investors in terms of profitability. Besides being in capitulation territory for the second time this year, Bitcoin has reached sixth place in its twelve-year price history.
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