Into The Cryptoverse Website: Bitcoin Risk Metric

This chart shows the price color-coded by Risk metric values. Values near 1 have a darker red color while values near 0 have a dark blue color. The purpose of the Risk metrics is not to predict price bottoms nor price tops, but rather to identify areas that should be attractive buying- or selling points in the longer term. Low Risk indicates potentially interesting buying areas and high Risk indicates potentially interesting selling areas. The formulas for creating the metric are unpublished and are only known to Benjamin Cowen, the creator. The formulas do account for diminishing returns.

All crypto assets are created after Bitcoin and have therefore experienced less market cycles that could be used to fit data to. Sometimes the behavior of certain assets is also very unclear. We therefore assign a confidence parameter from 1 to 9 to each Risk Metric, those with higher confidence are more likely to produce reasonable predictions, while for lower confidence assets it is less clear. Lower confidence assets might also need re-fitting in the future, after more market cycle tops/bottoms are in.

This chart allows you to look at the market sentiment in a quick glance. Once we enter the red regions then the asset is getting significantly overvalued, based on the historical performance of this metric. Likewise, once we enter the dark blue regions the asset is getting significantly undervalued.

[bosswarrior]

Feels like I just discovered a spinoff series of my favorite tv show

[ApoHD]

These thumbnails bring me back to 2020

[pvanukoff]

This has been my mantra for years. You can't predict the future, you can only react to it. DCA in, DCA out.

[FrankMoreiraV]

Literally thought this was a fake account and just when I was about to finish reporting the account I heard the first few seconds of the first video, OOPS

[orioncruz]

FYI, RENDER isn't working when you select it in the "current risk levels" part of the website

[SalvatoreNicoFranco]

Great job! Is there a risk metric for navigating the macroverse for passive ETF investors? If not, are you guys planning to implement it in the future?