GM

We have an indicator for #Bitcoin called: Sharpe Ratio The Sharpe Ratio shows how much excess return (over the bank interest rate) you receive for each unit of risk you take, and its formula is: (Return - Risk-Free Rate of Return) ÷ Volatility When this number becomes strongly negative, it means that the asset price has fallen much more than expected relative to its volatility. In simple terms: “selling pressure has reached saturation and the price is stuck at the bottom.” In such a situation, the probability of a return to the mean (Mean Reversion) increases. The level that this indicator has reached now is exactly the same as the bottom points of previous cycles; but this does not mean that the definitive bottom is here, but rather shows that in terms of risk-adjusted return, buying in this area has historically been less risky than many other levels.

#bitcoin #nostr #zap #memes

GM

GM