Risk Market Map is a new on-chain analysis indicator introduced yesterday by token market analyst @TheRealPlanC. It presents a 10-point risk assessment scale for the Bitcoin (Bitcoin (BTC)) market. Currently, it is in the moderate “HODL range” with a cost of 4.6.

Almost every day, new ways are born to exploit the advantage that on-chain analysis provides in the token market. Yesterday, an interesting new Risk Market Map indicator appeared, that aims to estimate the relative investment risk in the Bitcoin (BTC) market.

Its author is an analyst @TheRealPlanC, gaining upward popularity on crypto-Twitter. He recently proposed the so-called Market Reversal Indicator, that recently turned green, signaling the beginning of an uptrend.

Risk Market Map in the HODL range

The Risk Market Map indicator resembles Bitcoin’s well-known rainbow chart, that shows degrees of relative risk in the market. It includes a 1-10 scale that helps you assess the upside or downside potential. According to the creator, the Risk Market Map scale can be divided into 3 parts:

  • red: 8-10 – sell range
  • blue: 4-7 – HODL range
  • green: 1-3 – buy range

Source: Twitter

According to @TheRealPlanC, the current cost of the indicator, for a Bitcoin (BTC) cost of $43,000, is 4.6. Interestingly, the extreme costs for the current market situation are, according to the indicator, $24,274 for a risk level of 1 and $99,284 for a risk level of 10.

Indicator for lengthy-term investors

The performance of the indicator inside a lengthy-term Bitcoin chart is one time before more interesting. Its creator tweeted a chart going back to early 2019. It turns out that the rate of BTC was inside the given scale at all times.

Only one time before did the cost reach the extreme buy range of 1. This occurred during the COVID-19 crash in March 2020. On the other hand, in the go on 3 years, the cost has not back although realized the extreme risk level of 10. Three times, however, it has captured the level of 9. This happened during the upswings of June 2019, as well as in January and March 2021.

Source: Twitter

The author does not disclose that on-chain indicators he used to build the Market Risk Map. Instead, he comments which it should not be used by interim traders, but is a tool for protracted-term investors:

“Just to be clear this is meant to be used by prolonged-term holders which want to play the multi-year market cycle and know while to take some #BTC off the table and while is a good time to DCA more in. It is not meant to be used for swing dealing on shorter time frames.”

In addition, in another tweet, he explains which the colored fields he introduced do not have to be orthodoxly played by their assigned names.

“You can for sure DCA in during the HODL range, especially 4 & 5, however, it is barely decisive to understand your relative risk. The stronger the score, the more risk you are tsuchlikeg on.”

For CryptCraze’s latest BTC analysis, click here.

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