Bitcoin On-Chain Metric Signals Potential Price Weakness as Speculators Sell at a Loss
Summary:
Bitcoin's SLRV Ratio has "flipped" for the first time since November 2022, indicating potential weakness in BTC price. This on-chain metric, coupled with speculators selling at a loss, has market observers anticipating a drop towards $23,000. The inverted SLRV ribbons before the FTX collapse raise concerns among investors. Please note that this is not investment advice.
Bitcoin (BTC) may have experienced a steeper decline last week as a significant on-chain metric mirrored the movement seen during the FTX crash. The SLRV Ratio, which measures the Short to Long-Term Realized Value (SLRV) of Bitcoin, has recently "flipped" for the first time since November 2022. The SLRV Ratio monitors the velocity of BTC on-chain using the HODL Waves metric, which categorizes the circulating supply based on the age of coins involved in transactions. By analyzing the crossovers between the 30-day and 150-day moving averages of this ratio, market observers anticipate a potential drop towards the $23,000 price range. The inverted SLRV ribbons in mid-August preceded the FTX collapse, causing concern among investors. Analysis also reveals that speculators, or short-term holders of BTC, have been selling at a loss since late August, leading to a shift in market dynamics. Please note that this article does not provide investment advice and readers are advised to conduct their own research.
Published At
9/5/2023 5:13:12 PM
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