Reserve

Bitcoin

when

April

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/investors-find-bitcoin-attractive-despite-price-surge/" data-wpel-link="internal">Investors Find Bitcoin Attractive Despite Price Surge</a> 
The price of the largest cryptocurrency, <a href="https://en.coin-turk.com/invesco-revives-spot-bitcoin-etf-application-amid-other-industry-giants/" data-wpel-link="internal">Bitcoin</a> (BTC), has more than doubled over the past year, yet it continues to offer an attractive risk-reward ratio for investors. One of the key indicators demonstrating this is the “reserve risk,” an on-chain indicator that successfully predicted the bull run at the beginning of 2023. 
<h2 style="text-align: justify" id="strong-reserve-risk-and-long-term-investors-confidence-in-bitcoin-strong">Reserve Risk and Long-Term Investors’ Confidence in Bitcoin</h2> 
Reserve risk is an indicator that measures confidence levels based on long-term investors’ willingness to delay spending, ranging from 0 to 1. According to CryptoQuant <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener" data-wpel-link="exclude">data</a>, the indicator is currently in the green zone, below 0.002. This low value indicates that long-term investors are more inclined to hold Bitcoin at its current <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market price</a> rather than sell. This scenario suggests favorable demand-supply dynamics and offers an attractive risk-reward ratio for those looking to make new or additional investments. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-376465" src="https://coin-turk.com/wp-content/uploads/2024/08/Bitcoin-Rezerv-Riski.jpeg" alt="" width="1622" height="942"> 
India-based crypto research firm MintingM stated, “Reserve risk remains in the green zone, meaning that buying BTC at current levels still offers an exceptional reward-risk ratio. Investing in Bitcoin when reserve risk is in the green zone has historically provided significant returns over time,” supporting this expectation. 
<h2 style="text-align: justify" id="strong-historical-trends-and-the-importance-of-reserve-risk-strong">Historical Trends and the Importance of Reserve Risk</h2> 
Reserve risk tends to fluctuate in sync with bull and bear trends. Historically, the green zone below 0.0027 indicates a slow transition from the final stages of a bear market to a bull market. Readings above 0.02 signify the peaks of a bull market. 
Other indicators measuring the percentage of supply inactive for a certain period also show a return to a holding strategy after some profit-taking at record levels earlier this year. Blockchain analytics firm Glassnode stated in its weekly report, “Bitcoin’s bull markets naturally attract selling pressure as higher prices encourage long-term investors to sell some assets for profit. We observed this phenomenon in March and April with significant declines in the 1-year and 2-year inactive supply metrics. The rate of decline in these curves has recently slowed, indicating a gradual return to HODLing as the dominant investor behavior.” 
The continuous bullish signals from on-chain indicators align with market consensus. With the Fed’s upcoming interest rate cuts, BTC is expected to break out of its long-term sideways movement between $60,000 and $70,000 and begin a bull run. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/investors-find-bitcoin-attractive-despite-price-surge/" data-wpel-link="internal">Investors Find Bitcoin Attractive Despite Price Surge</a></h5>
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Investors Find Bitcoin Attractive Despite Price Surge

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