The analysis of Bitcoin (BTC) indicates that it is likely to show potential returns in the near future, according to research from Capriole Investments. The hedge fund's founder, Charles Edwards, presented this interpretation to the public in a tweet on April 2, referring to a prediction made by the SLRV Ribbons metric that has been created in line with the analysis of Short-to-Long-term Realized Value (SLRV) Ratio set forward by the well-known analyst David Puell. The SLRV Ratio serves to measure the percentage of the BTC supply active in the last 24 hours and compare it to that last active 6-12 months ago, which gives insight into the sentiment and possible outcome of Bitcoin price trajectory. Edwards further clarified the tool in an introductory blog post: SLRV Ribbons plots a thirty-day moving average against a 150-day moving average, and a bullish phase may be observed when the former crosses over the latter.

The said metric has been backtested for the past few years and can potentially enhance investment returns attainable through buying and holding Bitcoin, as far as Edwards is concerned. Adding to this insight is the Bitcoin Yardstick put forward by Cointelegraph. It shows that the BTC market capitalization is recovering against hash rate and this is supposedly similar to the trend at the lows of 2019. Additionally, the Yardstick suggests that Bitcoin is comparatively cheap by current pricing.

Final conclusions of the analysis suggest that despite the current volatility Bitcoin will potentially gain in the near future. Though, investors should be reminded that past performance should not be considered as an indicator of the future performance of an individual asset. It is important to take into consideration the risks and the possibility that there may be sustained losses during this investing cycle.



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