Bitcoin ‘Risk Index’ Hits Zero, Has Selling Pressure Finally Exhausted?

The Bitcoin Risk Index just hit zero, “a full low-risk regime,” reported Swissblock on Tuesday. The metric is a proprietary indicator that gauges the overall risk level in the Bitcoin market. It essentially measures the relative balance between selling and buying pressure, and how “risky” it is to hold or buy BTC.

Swissblock noted that it signals reduced selling pressure, a completion of the bottoming phase (but not yet expansion), and “stabilization inside the low-risk regime.”

Bitcoin at Bear Market Resistance

CryptoQuant analyst ‘Darkfost’ observed that Bitcoin’s Coin Days Destroyed (CDD) metric has “collapsed,” which signals reduced long-term holder activity.

While this may sound ominous, it could signal units being moved into quantum-secure custody and is also a sign of reduced selling pressure.

Meanwhile, CryptoQuant research head Julio Moreno noted that the price of Bitcoin is approaching a major bear market resistance – the traders’ on-chain Realized Price, currently at $76,800.

Alphractal reported something similar, stating that Bitcoin is approaching key on-chain cost resistance levels, including the True Market Mean Price and the short-term holder Realized Price.

BTC tapped $75,800 on Tuesday, its highest level since March 17. However, it hit resistance again there and fell back to $74,000 at the time of writing.

Ethereum Relief Rally Continues

Ethereum has outperformed Bitcoin recently and tapped $2,400 on Tuesday, its highest level since early February. Following recent positive momentum across crypto markets, “ETH has reclaimed the 1 to 3 month holder cost basis at $2,300,” reported Glassnode.

However, it added that the structure is “consistent with a bear market relief rally,” and comparable to the bounces observed in late 2022, “rather than a structural trend reversal.”

Meanwhile, Santiment reported that small retail traders are “dumping their Ethereum aggressively.” The crowd believes the 17% pump since late March is a bull trap, “which strengthens the likelihood of this bullish momentum continuing,” it said before concluding:

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