On-chain data shows the Bitcoin \u2018SLRV\u2019 Ribbons have recently once again been giving a green signal. Here\u2019s what this could mean for the asset.<\/p>\n
In a new post<\/a> on X, Capriole Investments founder Charles Edwards has talked about the latest trend in the SLRV Ribbons for Bitcoin. The SLRV Ribbons are based on an on-chain indicator known as the \u201cShort-Term to Long-Term Realized Value (SLRV) Ratio.\u201d<\/p>\n The SLRV Ratio 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.<\/p>\n The supply younger than 24 hours corresponds to the part of the cryptocurrency that\u2019s becoming actively involved in trading. That is, the part of the supply that\u2019s constantly in motion. Meanwhile, the 6 to 12 months old supply represents the coins that have just matured into the domain of the HODLers<\/a>.<\/p>\n As such, whenever the SLRV Ratio has a high value, it means the short-term trading interest in the asset is high compared to the appetite for HODLing. On the other hand, it being low can indicate long-term holder behavior is dominant in the sector.<\/p>\n The SLRV Ribbons, the actual indicator of focus here, makes 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)<\/a> of the SLRV Ratio.<\/p>\n Now, here is the chart for the indicator shared by Edwards that shows the trend in these MAs over the last few years:<\/p>\n 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.<\/p>\n