⚠️The 1-year Percentage Change of Bitcoin is approaching the negative zone. Out of the four times this has happened, three led to bearish movements, while one had no significant effect.

Since an asset’s historical variation is used to calculate various market metrics—widely utilized by funds and banks—the negative zone can be seen as a period of lower risk and return but also lower apparent volatility.

If Bitcoin follows the pattern seen in 2020, we might just be going through a normal consolidation phase. Otherwise, it is likely that the metric will continue moving into the negative zone, increasing the chances of new lows.

Alphractal