Financial Asset Risk Metric
Price Chart (Log Scale) with Risk Metric
Current Risk Level for Bitcoin:
70
0 (Low Risk)
25
50
75
100 (High Risk)
Medium-High Risk: Consider reducing position size
Historical Risk Levels
| Date | Event | Risk Level | Recommendation |
|---|---|---|---|
| Mar 2024 | Recent High | 90 | Sell |
| Nov 2022 | Market Bottom | 5 | Buy |
| Nov 2021 | Market Peak | 95 | Sell |
Risk Metric Explanation
The risk metric (0-100) is calculated using a combination of factors:
- Price Momentum: Rate and sustainability of price changes
- Market Sentiment: Overbought/oversold conditions
- Cyclical Position: Where the asset is in its market cycle
- Historical Context: Proximity to previous extremes
Risk Interpretation:
- 0-25: Low risk, good buying opportunity
- 26-74: Moderate risk, monitor position
- 75-100: High risk, selling opportunity