Bitcoin’s short-term Sharpe ratio has fallen to nearly -38, a level that CryptoQuant data associates with historical cyclical stress zones. meanwhile, $BTC Chart watchers were focused on the weekend micro-support band between $66,190 and $66,946, which was hovering around $67,987.
Bitcoin’s short-term Sharpe ratio revisits historical stress zone
Bitcoin’s short-term Sharpe ratio has fallen to extremely negative levels, with CryptoQuant data and analyst posts on X linked to past cycle lows. The reading on the chart is near -38, a zone that is historically rare and previously seen during periods when Bitcoin was trading under significant stress, the post said.
Bitcoin short-term Sharpe ratio. sauce: cryptoquant
This chart overlays Bitcoin’s price with the short-term Sharpe ratio, highlighting similar extremes around 2015, 2019, and 2022. In both cases, the index fell well below zero as short-term returns weakened and volatility increased. Prices then recovered and eventually pushed higher, but analysts saw this as a risk-adjusted repeating pattern.
This decline in the Sharpe ratio follows an upswing into the second half of 2024 followed by a cooling phase. The risk-adjusted index contracted rapidly as price movements slowed but volatility remained high. Therefore, this indicator has slipped into the same range that previously marked a surrender-style situation on a shorter time frame.
Historical examples in the chart show that the Sharpe ratio improves with a stable price structure after a significant negative phase. However, this indicator tracks short-term risk-adjusted performance rather than confirming a complete trend change. As a result, while current signals indicate stress in the short window, the next direction still depends on how price and volatility develop from here.
Short Term $66,190 – $66,946 Frame Micro Support $BTC setting
Bitcoin The BTCUSD index is trading near $67,987 on the 15-minute chart, as analyst group More Crypto Online said that the price may be forming a B wave within a range they named White Wave 2. While the update framed the current move as a pullback after the recent decline, the chart maintained the overhead of the downward trendline that price is beginning to challenge.
Bitcoin 15 minute BTCUSD index chart. sauce: more crypto online
More Crypto Online marked a micro-support zone between $66,190 and $66,946, stating that the white scenario will remain the dominant case as long as $66,190 holds. This band is directly below the current price, so it acts as the closest buffer when: $BTC Retrace during weekend sessions.
On the upside, analysts set the first resistance level at $68,304. The chart also shows high resistance boxes at the top, with Fibonacci references labeled around $68,304, $68,945, and $69,867, concentrating on short-term tops if the price continues to rise.
