According to CryptoQuant analyst Darkfost, the Bitcoin Sharpe ratio, an indicator measuring risk/reward potential, has declined into negative territory, a situation typically associated with the final stages of bear markets. The ratio fell to -10, its lowest level since March 2023. The analyst noted that this does not mean the bear market is over, but that the risk/reward profile has become extreme. The Sharpe ratio evaluates BTC performance relative to the risk taken, showing the expected return per unit of risk per investor.
Bitcoin Sharpe ratio is at bear market lows. Source: Darkfost
BTC Sharpe Ratio at Historical Lows
The negative ratio was also observed in bear market depths like late 2022-early 2023 and late 2018-early 2019. When BTC fell to 82,000 dollars in November 2025, the ratio reset to zero. Darkfost emphasized that risk is still high relative to returns. 10x Research analysts also stated that the overall downtrend continues and there is no urgency to buy without a clear catalyst.
BTC Latest News and Price Recovery
BTC dropped to 60,000 dollars on Friday, recovered to 71,000 dollars on Monday but remained 44% below its October peak of 126,000 dollars. It rallied 15% in the last 15 hours, rising above 68,000$ from 60,000. Garrett Jin deposited 5,000 BTC (351 million dollars) to Binance; this could signal selling pressure. Click for detailed BTC analysis.
BTC Technical Outlook and Supports
Current price 70.902$ (+2.51%), RSI 35.06 (Oversold), trend downward, Supertrend bearish. EMA 20: 78.294$. Supports: S1 70.926$ (strong), S2 65.842$. Resistances: R1 72.212$, R2 78.962$. Check BTC futures. BTC spot market.
Source: https://en.coinotag.com/btc-sharpe-ratio-at-bear-market-bottom-level
