#BTCBelow80K The risk/reward ratio (RRR) is an essential tool for evaluating trades with Bitcoin (BTC). It is calculated by dividing the potential loss (risk) by the expected gain (reward).

For example, if BTC is at $78,000 and you plan to buy it with a stop-loss at $76,000 (risk of $2,000) and a target of $84,000 (reward of $6,000), the RRR would be 1:3. This means that for every dollar at risk, you expect to gain three.

In the current context, with BTC below $80,000 as of April 7, 2025, traders are looking for entry levels with favorable RRR, such as buying near support levels ($76,000) with targets at resistance levels ($82,000-$85,000). A minimum RRR of 1:2 is recommended by experts to justify the risk in volatile markets like cryptocurrencies.

However, technical analysis, such as moving averages or candlestick patterns, should support these decisions, as a high RRR does not guarantee success without a solid strategy.