Thursday, November 21, 2024

Bitcoin Price Movement Mimics Period Leading Up To FTX Downfall

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Alicia Garcia
Alicia Garciahttps://blog.cryptoapa.com/
Alicia is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.

A key Bitcoin price metric has shown movement similar to the time right before the FTX implosion rocked the crypto market. The Short to Long-Term Realized Value (SLRV) Ratio recently saw its 30-day and 150-day moving averages cross, a pattern not seen since November 2022.

First devised by analyst David Puell and ARK Invest, the SLRV Ratio utilizes Bitcoin’s HODL Waves data to track on-chain velocity. The crossover between SLRV’s moving averages has previously coincided with major price swings, sparking comparisons to market conditions preceding the FTX crisis.

While not a definitive forecast, the data highlights selling of older Bitcoins and decreasing exposure among short-term holders. This suggests caution may be warranted as the crypto market processes the fallout from its recent significant loss.

Bitcoin’s price chart reveals technical patterns that echo the time right before the FTX collapse crippled the crypto market last November. An indicator called the Short to Long-Term Realized Value (SLRV) Ratio recently saw its 30-day and 150-day moving averages cross, a development not seen since the lead-up to the FTX implosion.

The SLRV Ratio uses Bitcoin’s HODL Waves data to measure on-chain velocity. Its moving average crossover has previously coincided with major Bitcoin price pivots. The current chart mimics activity in the days preceding the FTX crisis, signaling potential excessive speculation.

While not determinative, the technicals highlight older Bitcoin sales and decreasing exposure from short-term holders. The market may still feel aftershocks from FTX as participants exercise renewed caution.

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