The Bitcoin Risk-Off Signal model indicates that current risk levels are at a record low, reminiscent of conditions before previous bull markets.
Low Bitcoin Risk Levels
According to CryptoQuant, the Bitcoin risk assessment model shows that current risk levels are among the lowest recorded in the past decade. Utilizing six weighted input metrics, the model analyzes trader behavior and investor positioning.
Comparison with 2016 and 2018 Bull Markets
Historical data shows that readings below the 20% level often align with major accumulation phases. Similar setups were observed from late 2015 to early 2017 and briefly during the last months of 2018, preceding upward price momentum for Bitcoin.
Increase in Market Confidence
The current model also displays a low number of high-risk signals, indicating increased investor confidence and long-term positioning in the market. Axel Adler Jr., the model's developer, noted that this should be viewed as a reference point rather than a guarantee.
The observed trends in the Bitcoin risk model could suggest growing confidence among long-term investors, potentially leading to an upcoming bull market.
