#bitcoin
📉 Bitcoin at the bottom? What does the Sharpe ratio say
Today’s $BTC performance is making even experienced traders nervous, but history suggests we are entering a zone of extreme opportunity.
🔍 Key takeaways:
• The Sharpe ratio has fallen to -10. This is the lowest level since March 2023. For context: negative values usually indicate the final stages of a bear market (as was the case in late 2018 and 2022).
• Risk vs Reward: The risk of investing in $BTC remains high relative to recent returns, but it is in such “red zones” that market reversals often form.
• Price context: After falling to $60,000 last Friday, Bitcoin has rebounded to $71,000. However, this is still 44% below its October peak of $126,000.
⚠️ Why not rush?
Analysts at CryptoQuant and 10x Research warn:
1. Duration: This phase of "pain" could last for several more months.
2. Lack of catharsis: While there is no clear driver for growth, the global downtrend remains in force.
3. Possible bottom: Some traders expect a "true bottom" in the $50,000 area before a confident recovery begins.
