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On-chain indicators such as reserve risk show that Bitcoin still offers an attractive risk-reward ratio
2024-08-02 07:57
Odaily News According to data tracked by CryptoQuant, Bitcoin's "reserve risk" indicator remains entrenched in the green zone below 0.002. Reserve risk is a measure of long-term holder confidence that ranges between 0 and 1. Lower indicators indicate that long-term holders are motivated to hold rather than sell at Bitcoin's current market price, which means favorable supply and demand dynamics and an attractive risk-reward ratio for users looking to make additional or new investments. "Reserve risk continues to remain in the green zone, which means that buying Bitcoin at current levels can still provide a high risk-reward ratio," said MintingM, an Indian cryptocurrency research company. "Investing in Bitcoin during green zone reserve risk periods can generate huge returns over time." Other indicators that measure the proportion of idle supply during a specific period also show that the Bitcoin market has returned to a holding strategy after some profit-taking at record highs earlier this year. (CoinDesk)