{"id":522258,"date":"2022-12-06T21:55:54","date_gmt":"2022-12-06T18:55:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/"},"modified":"2022-12-06T21:55:54","modified_gmt":"2022-12-06T18:55:54","slug":"bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/","title":{"rendered":"# Bitcoin on-chain data shows 5 reasons why the BTC bottom could be in"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3390f6566f6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3390f6566f6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#%E2%80%9D_Bitcoin_on-chain_data_shows_5_reasons_why_the_BTC_bottom_could_be_in_%E2%80%9C\" >&#8221; Bitcoin on-chain data shows 5 reasons why the BTC bottom could be in  &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#SLRV_Ribbons_flash_a_buy_signal\" >SLRV Ribbons flash a buy signal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#BTC_price_slips_under_its_global_electrical_cost\" >BTC price slips under its global electrical cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#BTC_miner_selling_hits_a_peak\" >BTC miner selling hits a peak<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#Bitcoin_Hash_Ribbons_confirm_another_miner_capitulation\" >Bitcoin Hash Ribbons confirm another miner capitulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\/#All-time_high_Bitcoin_hodling_despite_a_historic_price_drawdown\" >All-time high Bitcoin hodling despite a historic price drawdown<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_on-chain_data_shows_5_reasons_why_the_BTC_bottom_could_be_in_%E2%80%9C\"><\/span>&#8221; Bitcoin on-chain data shows 5 reasons why the BTC bottom could be in  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-0aad2d21>After a whirlwind November for Bitcoin (BTC), certain on-chain and Bitcoin price metrics are suggesting that BTC\u2019s bottom could occur in December. In Capriole Investments&#8217; latest <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/capriole.com\/capriole-newsletter-issue-26\/\">report<\/a>, they provide analysis on Bitcoin finding the bottom. When taking into realized value, miner capitulation, mining electrical costs, downdraw and record hodler numbers, a BTC floor of $16,600 &#8211; $16,950 seems formed.\u00a0<\/p>\n<p>Here are five reasons why Edwards believes Bitcoin price is coming closer to a cycle bottom.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SLRV_Ribbons_flash_a_buy_signal\"><\/span>SLRV Ribbons flash a buy signal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/capriole\/slrv-ribbons-ef8f44cd6ce7\">SLRV Ribbons<\/a> track investment flows by combining the 30-day and 150-day moving averages to the SLRV Ratio which is a percentage of the Bitcoin moved in 24 hours divided by BTC held for 6-12 months. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/8550eb1e-ff16-43a8-97e8-580688842137.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin SLRV Ribbons. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>According to Charles Edwards, the SLRV Ribbons outperform the BTC HODL strategy, making it a strong indicator of where BTC price might be headed. <\/p>\n<p>While the SLRV Ribbons have been bearish throughout 2022, the recent move to $16,600 flipped the indicator to bullish. According to Edwards, the change creates a buy signal for investors and institutional funds still in the market, thus building a strong case for Bitcoin\u2019s price floor. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_price_slips_under_its_global_electrical_cost\"><\/span>BTC price slips under its global electrical cost<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While it is well known that a large swath of Bitcoin miners are currently operating at a loss, this is not a rare phenomenon throughout BTC\u2019s history. <\/p>\n<p>Bitcoin miners\u2019 total production cost includes mining hardware, operational costs, capital costs, variable-rate power contracts and other factors, whereas the electrical cost considers only the raw electricity used to mine BTC. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/33e94220-835c-41d3-9199-7855f36774ec.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin production cost and BTC electrical cost. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>The raw electrical cost has historically been a Bitcoin floor because it is rare for BTC to trade below this price point. Historically, Bitcoin has only traded below the electrical cost four times, the most recent being Nov. 10 when Bitcoin\u2019s electrical cost hit $16,925.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_miner_selling_hits_a_peak\"><\/span>BTC miner selling hits a peak<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Miners are still losing money with production costs above the spot price of Bitcoin. This dichotomy forces miners to sell Bitcoin to stay afloat.<\/p>\n<p>The current level of Bitcoin miner selling is the third largest in history, with the other two events h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening when BTC was $2.10 in 2011 and $290 in 2015. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/f30e0596-2052-4920-b602-5c0a9f8eb35c.jpeg\"><figcaption style=\"text-align: center;\"><em>Miner BTC selling pressure, top events. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In hindsight, investors would love to have those prices back and Edward\u2019s suggests that the current BTC price may represent a similar value.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_Hash_Ribbons_confirm_another_miner_capitulation\"><\/span>Bitcoin Hash Ribbons confirm another miner capitulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin miner capitulation involves miners turning off their ASICs which are no longer profitable, and selling portions of their Bitcoin reserves to cover expenses. <\/p>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/capriole.com\/capriole-newsletter-issue-26\/\">Capriole<\/a> Investments, during miner capitulations, a floor price forms before the hash rate starts to improve. As noted in the chart below, another miner capitulation occurred on Nov. 28 and if the analysis is correct, this would put Bitcoin\u2019s bottom at around $16,915 since the hash rate has begun rising after the Nov. 28 date. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/2545c303-cfee-48e1-bcae-7decace93cbd.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin mining Hash Ribbons. Source: TradingView<\/em><\/figcaption><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin clings to $17K as ARK flags &#8216;historically significant capitulation&#8217;<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"All-time_high_Bitcoin_hodling_despite_a_historic_price_drawdown\"><\/span>All-time high Bitcoin hodling despite a historic price drawdown<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One metric used to analyze Bitcoin hodler behavior is the Long-term Holder Net Unrealized Profit and Loss (NUPL) tracker. <\/p>\n<p>Throughout Bitcoin\u2019s history, the NUPL metric has only shown such a large downdraw on four occasions. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/168f6a2e-efc4-45c0-a4fb-a204e0393616.jpeg\"><figcaption style=\"text-align: center;\"><em>Bitcoin NUPL metric. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>The previous occasions that witnessed such large downdraws represented value Bitcoin purchases for investors. Edwards suggests that if investors view BTC price as undervalued, their choice to accumulate could further solidify Bitcoin\u2019s floor.<\/p>\n<p>Another trend is forming as the long-term hodlers metric hits peak numbers. Currently, 66% of Bitcoin\u2019s supply is in the hands of long-term hodlers, meaning they have held their Bitcoin for over one year.<\/p>\n<p>According to Edwards, this behavior is aligned with shifting macro markets.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We have an all-time-high in long-term hodling. Those keeping Bitcoin at least 1 year now represent more of the network than ever before, 66%. Prior peaks of long-term holding all aligned with bear market toughs. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/4IXnUg5f3S\">pic.twitter.com\/4IXnUg5f3S<\/a><\/p>\n<p>\u2014 Charles Edwards (@caprioleio) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/caprioleio\/status\/1600053366478061571?ref_src=twsrc%5Etfw\">December 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>While the markets are still heavily correlated to equities and vulnerable to macro market shifts, multiple data points hint that Bitcoin could be in the final stages of a bottoming process.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-on-chain-data-shows-5-reasons-why-the-btc-bottom-could-be-in\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin on-chain data shows 5 reasons why the BTC bottom could be in &#8220; After a whirlwind November for Bitcoin (BTC), certain on-chain and Bitcoin price metrics are suggesting that BTC\u2019s bottom could occur in December. In Capriole Investments&#8217; latest report, they provide analysis on Bitcoin finding the bottom. When taking into realized value,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":522259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvMGIxMWU0NWQtNzQ1ZC00NzQ4LWFlODMtYzY4NmVhNTdjMzExLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,74863,74860,73785],"class_list":["post-522258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/522258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=522258"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/522258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/522259"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=522258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=522258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=522258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}