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.
Such periods have typically signaled substantial turning points in the market. For instance, a similar dip in the Sharpe ratio during September-October 2023 was followed by a considerable rebound in Bitcoin’s price.
CryptoQuant suggests that this could potentially present a risk-adjusted entry point for buyers. However, a bearish interpretation could see this as an indication of sustained volatility, advising against market entry until a clearer trend emerges.
Another crypto trader, TheScalpingPro, is curious about whether September is a bearish month for Bitcoin. The leading cryptocurrency by market cap has been stuck in a long consolidation phase for the past few months.
TheScalpingPro drew parallels to when the consolidation started in March; by September, prices started to recover.
"Over the next 7 months, Bitcoin pumped by 195%," he said, but remains uncertain if September will be the turning point again.
Also Read: Bitcoin Vs. Altcoins Dominance: This ‘Unusual Cycle’ Is Getting ‘Harder And Harder To Play’
Why It Matters: Glassnode co-founder Negentropic tweeted that September is not likely to follow a bearish pattern.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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