Bitcoin copying ‘familiar’ price trend in 2023, two more metrics show

bitcoin (BTC) is on its way to a new bull market and should generate significant profits in the process, new analysis reveals

in a cheep On April 2, Charles Edwards, founder of Bitcoin and digital asset hedge fund Capriole Investments, marked a “familiar” bullish sign on the SLRV Ribbons metric.

Edwards: SLRV starts a "new trend"

SLRV Ribbons is a tool to measure the potential profitability of Bitcoin. Introduced by Capriole in 2022, it is based on well-known analyst David Puell's Short-Long-Term Realized Value (SLRV) index.

The SLRV ratio takes the percentage of the active BTC supply in the last 24 hours and compares it to the last active 6-12 months ago. The result shows how comparatively active the short-term supply and the long-term supply are at a given point.

From this, an investor can get an idea of ​​both sentiment and the likely price path, but over time, such bid values ​​can change, Edwards argues.

Related: Crypto winter can affect the mental health of hodlers

SLRV Ribbons tries to address this by looking at the interaction between two moving averages. When its short-term 30-day moving average crosses the long-term 150-day moving average, Bitcoin is at the beginning of a bullish phase.

The metric "is about as simple as it gets" when it comes to reliable Bitcoin analytics tools, Edwards explained in a introductory blog postand currently repeats the classic bullish behavior with a crossover that will take place in early 2023.

"A new trend in SLRV tape, and it looks familiar," he summed up.

While relatively new, Edwards added that SLRV Ribbons had been tested to show both their reliability and their ability to improve BTC investment returns compared to buying and holding.

Bitcoin is still "cheap"

SLRV is not the only Bitcoin metric giving Edwards a sense of deja vu this month.

Related: BTC Price Targets Set at $35,000 as Bitcoin Sees 'Massive' Liquidity Drawdown

bitcoin Criterion, previously covered per Cointelegraph, reveals a recovery in Bitcoin's market cap vs. hash rate, but still classifies BTC as "cheap" at current prices.

“The Bitcoin Yardstick is painting a very familiar signature for the 2019 lows,” he commented on March 31.

After breaking out of the “cheap” zone earlier that year, BTC/USD only saw a brief comeback during the COVID-19 cross-market crash of March 2020.

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