Bitcoin (BTC) Faces Market Turning Point as Short-Term Sharpe Ratio Drops to Unseen Levels: CryptoQuant

On-chain analysis firm CryptoQuant pointed out how Bitcoin's BTC/USD short-term Sharpe ratio has plummeted to levels unseen since September-October 2023.

CryptoQuant highlighted how Bitcoin's short-term Sharpe ratio has dropped to levels not seen since September-October 2023, as per on-chain data. Such periods have usually indicated significant turning points in the market.

For instance, a similar dip in the Sharpe ratio during September-October 2023 was followed by a substantial rebound in Bitcoin's price. This could potentially present a risk-adjusted entry point for buyers, according to CryptoQuant's analysis.

However, a bearish interpretation could view this as an indication of sustained volatility, advising against entering the market until a clearer trend emerges.

Meanwhile, another crypto trader, TheScalpingPro, is examining whether September is a bearish month for Bitcoin. The premier cryptocurrency by market capitalization has been stuck in a prolonged consolidation phase for the past few months.

TheScalpingPro likened it to when the consolidation began in March and by September, the prices started to recover. "Over the next 7 months, Bitcoin pumped by 195%," he noted, wondering if September will mark the turning point once again.

Elsewhere, Glassnode co-founder Negentropic shared his thoughts on whether September will follow a bearish pattern. "September is historically bearish for Bitcoin with many calling it 'The Curse of September,'" Negentropic said. "We doubt 2024 will add to this narrative."

According to him, the month is starting on a low note, with upward catalysts. "If everyone's expecting it, it's less likely to happen (Soros' reflexivity)."

The above is the detailed content of Bitcoin (BTC) Faces Market Turning Point as Short-Term Sharpe Ratio Drops to Unseen Levels: CryptoQuant. For more information, please follow other related articles on the PHP Chinese website!