The post Bitcoin Max Pain Zone as Sharpe Ratio Lows Signals appeared on BitcoinEthereumNews.com.

Bitcoin’s short-term Sharpe Ratio drops to -38, matching levels seen at prior cycle bottoms in 2015, 2019, and 2022. Bitcoin’s short-term Sharpe Ratio has dropped to around -38, a level previously recorded during major cycle bottoms in 2015, 2019, and late 2022, reflecting extreme negative risk-adjusted returns, rapid price drawdowns, elevated volatility, and heightened selling pressure across the broader crypto market. Sharpe Ratio Drops to Extreme Negative Levels The Sharpe Ratio measures risk-adjusted returns by comparing excess returns to volatility. When the ratio turns deeply negative, it reflects sharp losses relative to recent price swings. A reading near -38 signals intense short-term stress in the market. Market observers note that similar levels appeared during prior Bitcoin cycle lows. In 2015, 2019, and late 2022, the metric reached comparable troughs. Each instance occurred during periods of heavy selling pressure. MAX PAIN ZONE JUST TRIGGERED Bitcoin’s short-term Sharpe Ratio just printed around -38, a level we’ve only seen at major cycle bottoms: 2015, 2019, and late 2022. Each time, it felt terrible.Each time, it marked exhaustion — not the start of a new collapse. The Sharpe Ratio… pic.twitter.com/Mld8hMYFzR — CryptosRus (@CryptosR_Us) February 19, 2026 These extreme readings followed rapid drawdowns and heightened volatility. Traders often faced forced liquidations and margin pressure during those phases. The negative ratio reflected weak short-term performance relative to risk. Historical Context of Cycle Bottoms Data from previous cycles show that extreme Sharpe Ratio lows coincided with market exhaustion. In earlier downturns, those levels appeared near the end of sustained selling phases. Price action later stabilized and shifted higher in subsequent months. In 2015, Bitcoin recovered after a prolonged bear market. In 2019, the asset rebounded following a steep correction. In late 2022, similar conditions were followed by renewed upward momentum. Analysts tracking historical patterns point to these…

---

Filed under: News - @ February 19, 2026 12:41 pm