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Two indicators suggest the decline of Bitcoin may be coming to an end, according to CryptoQuant., 2026/04/10 14:51:30
Two indicators, the Sharpe ratio and the delta of buying/selling pressure, indicate the conclusion of Bitcoin’s decline, according to analysts from the on-chain platform CryptoQuant.
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Analysts report that the Sharpe ratio has dropped to approximately -40. In previous cycles—specifically in 2015, 2019, 2020, and 2023—such values coincided with the establishment of long-term entry points. This may suggest a significant undervaluation of Bitcoin, as per CryptoQuant’s analysis.
The Sharpe ratio reflects the risk-return relationship: a sharp decline indicates that the asset has significantly decreased relative to its volatility and may be trading below fundamentally justified levels.
The second indicator, the delta of buying and selling pressure, pointed analysts to a transitional phase: the crypto market has moved past the capitulation stage, where selling pressure fell below -0.05 and was accompanied by sharp movements; following this, the indicator began to recover.
The second indicator reflects the balance between sellers and buyers: negative values indicate a dominance of selling, while an increase in the metric signals a gradual return of demand. So far, the indicator has not reached the “blue zone,” which signifies sustained interest in purchasing the leading cryptocurrency, as reported by CryptoQuant representatives.
Currently, the Bitcoin market is positioned between the end of the sell-off season and the formation of a stable upward trend, according to on-chain analysts. Historically, such periods have provided investors with the most favorable risk-to-reward ratios. In the near term, the timeline for recovery may depend on the economic landscape, liquidity, and investor sentiment, as suggested by CryptoQuant specialists.
Previously, co-founder of the Bitcoin Vector project and the CMCC Crest investment fund, Willy Woo, stated that the stagnation of Bitcoin’s price and the sideways movement of the leading cryptocurrency would only conclude in 10 to 12 years.
