Bull Run Has A lot of Scope to Continue – Bitcoin Reward Ratio
Despite the biggest drop in a month in the last 24 hours, bitcoin’s bull run will continue. Blockchain data has shown that the cryptocurrency is an attractive bet for existing holders and prospective buyers.
Bitcoin’s reserve risk metric measures the risk-reward ratio of investment that is based on long-term holders. It is currently at 0.008, but it has witnessed huge growth since July 2017.
The low current level suggests that confidence is still high as compared to the cryptocurrency’s price. The risk is attractive even after the cryptocurrency’s six-fold rally in the past 5.5 months.
The bullish signal is consistent as the positive picture has been painted by other important indicators, such as the market value relative to realized value ratio.
Bitcoin’s latest bull market started a year ago after the reserve risk fell into the buy zone.
The risk-reward ratio is unattractive once the indicator hits the red zone above 0.02.