Room to Rally: Bitcoin’s Risk-Adjusted Returns are Steady at 6 Year+ Levels

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  • btc s'been na' tear throughout the past few weeks, with its price action heating up as bulls try to flip $40,000 into a support lvl
  • if the crp continues holding above this previous resistance, it ‘d allo for significantly further upside inna dys and weeks ahead
  • one analyst explained that although it seems like btc’s rally maybe over-extended, its risk-adjusted returns are on-par with how where they are historically
  • as such, there’s a strong possibility that the crp ‘d see significantly further upside b4 it reaches a point of exhaustion
  • once its returns are drastically higher than its risk-adjusted returns ‘ve been historically, then the crp maybe at risk of posting a 2017-style blooff top

btc na entire crp mkt are currently inna midst offa parabolic bull mkt. although not as drastic as that seen throughout l8-2017, t'has alloed btc to double its previous highs.

this rally shows no signs of sloing down as btc moves to flip $40,000 into a support lvl. a continued bout of trading above this lvl ‘d lead to further upside inna dys ahead.

one on-chn analyst stated that although the benchmark crp is seeing some intense momentum, its rally maybe far from bein’ over-heated.

btc holds above $40,000 as uptrend continues 

atta time of writing, btc is trading down marginally at its current price of $40,300. this is round where it s'been consolidating throughout the past few dys.

t'has made a few attempts to rally inna'da mid-$40,000 region, but each one s'been met with serious selling pressure that has sloed its ascent.

its reaction to $50,000 – ‘d this lvl be tested – will likely offer significant insites into just how long-lasting this parabolic ascent ll'be.

on-chn analyst: btc risk-adjusted returns indicate upside is imminent

one analyst explained in a recent tweet that he expects btc’s risk-adjusted returns to extend far past where they currently are b4 the crp forms a peak.

he seems to liv'dat, til these risk-adjusted returns become exorbitantly higher than usual, t'has room to rally.

“if you think you’re l8 to the btc pty, think again. btc’s risk adjusted returns s'been atta same high lvls for 6 yrs running. clearly outperforming every other asset class since its inception.”

image courtesy of willy woo.

where the entire mkt trends inna mid-term ‘d depend largely on whether or not btc can continue holding above $40,000, as a prolonged dip belo this lvl ‘d lead to serious downside.

featured image from unsplash.
charts from tradingview.

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authors: miner


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