Bitcoin Price Drops Below $58K Again, BTC To Make A Comeback Says Key Metric
The post Bitcoin Price Drops Below $58K Again, BTC To Make A Comeback Says Key Metric appeared on BitcoinEthereumNews.com.
Este artículo también está disponible en español. After briefly trading above $59,000 in the early hours of Tuesday, Bitcoin price has now seen a significant retracement, dropping below the $58,000 price mark once again. However, despite this struggle to rally, a CryptoQuant analyst named Kripto Mevsimi recently shared an intriguing observation regarding Bitcoin price on the CryptoQuant QuickTake platform. Related Reading Bitcoin’s Sharpe Ratio Hits New Lows: Bullish Signal Or A Warning? According to the analyst, Bitcoin’s short-term Sharpe ratio has dipped to levels last seen during September-October 2023. For context, the Sharpe ratio is a measure used in financial markets to assess risk-adjusted returns, helping investors understand whether the returns of an asset are worth the risk involved. Bitcoin Sharpe ratio. | Source: CryptoQuant Mevsimi revealed that in September-October 2023, a similar drop in the Sharpe ratio was observed. This period marked a significant turning point for Bitcoin, as the top crypto rebounded strongly after the ratio hit its lows. The current scenario, according to the analyst, could indicate a potential opportunity for those with a bullish outlook. Particularly. The dip in the Sharpe ratio might suggest that Bitcoin’s price is poised for another recovery, offering a favourable entry point for investors looking to buy into the market with a risk-adjusted strategy. However, despite the bullish signal this metric might currently be suggesting Mevsimi cautioned: On the other hand, a bearish interpretation could see this as an indication of sustained volatility and caution against entering the market until a clearer trend emerges. Furthermore, the analyst explained that in 2023, the dip in the ratio coincided with the news of the Bitcoin Spot exchange-traded fund (ETF), which played a significant role in driving the market’s momentum. This time, however, the situation might be different, as external factors like macroeconomic conditions…
Filed under: News - @ September 4, 2024 4:01 am