Bitcoin Price Drops Nearly 4% Amid Questions on Bullish Momentum
The price of Bitcoin has decreased nearly 4% over the past week, raising concerns about the strength of its recent bull rally that peaked last week. Despite this decline, on-chain data suggests potential for further upward movement.
Current Market Condition
- Market analytics firm Alphractal noted a significant insight into Bitcoin’s price dynamics.
- The Sharpe Ratio is used to assess risk-adjusted returns; a rising ratio indicates higher performance relative to risk.
- A declining Sharpe Ratio suggests lower-risk zones with diminishing profits.
- The current Sharpe Ratio has not reached its previous peak trendline, indicating medium risk and less volatility.
- Alphractal highlighted that the price has not yet hit levels signaling excessive market euphoria, suggesting potential for further appreciation.
Investors are advised to maintain cautious optimism as historical values of the Sharpe Ratio have been linked to both bullish and bearish market cycles.
Bitcoin Price Overview
The current price of BTC is just above $104,100, down more than 1% in the last 24 hours and over 3% in the past week.
