đ Reserve Risk Indicators: A Powerful Onchain Metric đ
The Reserve Risk Indicators combines on-chain metrics to reveal the confidence of Long-Term Holders regarding the Bitcoin price, assisting in investment decisions.
đ High Confidence & Low Price (Green Zone): The risk/reward ratio is attractive for investing. Historically, investing under these conditions has yielded exceptional returns.
đ Low Confidence & High Price (Red Zone): The risk/reward ratio is unfavorable. Avoid investing when the indicator is in this zone.
đ Metric Details: VOCDD (Value of Coins Destroyed in Days) measures the movement of old coins. The more old coins are moved/sold, the higher the VOCDD, indicating the Bitcoin price is approaching a peak! MVOCDD (Median Value of Coins Destroyed in Days) smooths out the VOCDD and helps identify cycle peaks when it surpasses the BTC price.
đ”ïžââïž Long-Term Peaks and Valleys Detector: Weâve implemented a detector to identify long-term peaks and troughs based on the Reserve Risk. Soon, weâll also provide analysis for the short term!
đ Current Analysis: The beginning of 2024 was a realization period for Long-Term Holders, leading to a peak of $73,800. The stabilization of these metrics may signal decreased activity from these investors and a possible price recovery. However, be cautious of a potential downtrend if Reserve Risk continues to fall, which could lead to a rapid price drop. In such scenarios, Long-Term Holders' confidence will likely rise again, leading to quick accumulation.
