The risk reserve is a metric to analyze the confidence of the holders of an asset.Currently, it shows a high confidence in the holders of bitcoin.An analysis performed by the team of Glassnode shows that the risk reserve of bitcoin is at low levels not seen since the beginning of the year 2016. The risk reserve is a metric that is used to analyze the confidence of the holders of a active, long-term, relative to the price in a given period of time.In order to better understand the risk of booking, we can define it as the division between the price of the asset digital and the HODL Bank, which represents the expense-deferred to be done HODL (called HODL to the save action cryptocurrencies for long periods of time), so that you may prove what is the confidence of the investors.The risk reserve of bitcoin (online color mustard) is at low values, close to the levels of January 2019, after which BTC saw a bullish rally. Image: Glassnode / studio.glassnode.comCuando the risk reserve is low it means that the trust of users is high and the price is low, so investing in the criptomoneda becomes attractive. On the contrary, if the risk is high attractiveness of the criptomoneda decreases as the investor confidence is low.
High expectations of the market and confidence go hand in hand
That the risk reserve is at low levels currently, allows that there is an attractive relationship between risk and reward generated by investing in bitcoin, opening up the possibility of a growth impending of bitcoin.Currently, the behavior of the price of bitcoin allows us to observe a criptomoneda that remains solid at the same time that the adoption of the same is growing rapidly. This inevitably feeds the trust built over time between the holders of BTC, and those who wish to invest in the asset. What, in addition, it binds to the high expectations the market has of cryptocurrencies you can see, in the coming months, an upward trend that is driven by the next Halving of Bitcoin, which is expected for the month of may, 2020.
The year 2020 is fast becoming the perfect storm for Bitcoin
From the beginning of the year we have been able to appreciate as bitcoin, and several cryptocurrencies in the market, have been shown to have an upward trend that seems to attempt an attack against the bearish trend that marked the second quarter of the year 2019.At the time of the publishing of this article the price of bitcoin was $ 9.122. Image: TradingView.The coronavirus has been one of the main catalysts for the bullish momentum that has been shown to bitcoin since the beginning of the year, as the panic that it has generated has negatively impacted the traditional market; to such a point that recently the federal reserve of the united States had to make a crop of emergency, their interest rates as a preventive measure to the economic recession that I could live the country after the attempted containment of the disease.On the other hand, the day march 4, the supreme court of India removed the prohibition of trade with cryptocurrencies in the country, which could be added to the other factors of the sentiment bullish in the market of cryptocurrencies to create expectations that go hand in hand with the possible adoption of a market that has 1.3 billion inhabitants.