Bitcoin (BTC) Is Suddenly Looking Less Bearish, Key Metric Says

The co-founders of market intelligence firm Glassnode say that Bitcoin (BTC) is suddenly looking less bearish based on a key metric.

The co-founders of market intelligence firm Glassnode are keeping a close eye on Bitcoin (BTC) price action, and according to them, a key metric is suddenly looking less bearish.

In a new thread on the social media platform X, Jan Happel and Yann Alleman - who go by the handle Negentropic - shared an updated Bitcoin Risk Signal chart, showing that the metric has dropped below 25.

The Bitcoin Risk Signal, according to Alleman, is based on a “set of proprietary indicators, including Bitcoin price data, on-chain data and a selection of other trading metrics.” The indicator gauges whether BTC is at risk of a major drawdown in price.

The lower the value of the Bitcoin Risk Signal, the less likely BTC is to experience a significant price drop, and vice versa. As such, values below 25 on the indicator are generally considered bullish.

“Good news and bad news – which one do you want first?” the analysts wrote, kicking off their analysis.

“Good: the Risk Index has dropped below 25, meaning bearish pressure has significantly eased.”

However, before a bullish trend reversal can be confirmed, the analysts said that Bitcoin needs to flip the $100,000 level into support.

“Bad (or maybe not so bad): the BTC futures-to-spot ratio shows a higher increase in futures than spot, indicating this recovery is futures-driven. Meanwhile, shorts are piling up above $99,000-$100,000, which could fuel a squeeze.”

The analysts also noted that Bitcoin needs spot trading volume to increase in order to hold higher price levels as support.

“Each rebound is weaker, signaling a lack of spot volume for a stronger move…” they wrote.

“Until $97,000-$98,500 is recovered, $92,000 remains the key downside level to watch.”

At the time of writing, Bitcoin is trading hands for $98,336, having remained largely flat over the past 24 hours.