Bitcoin at $87K: BTC buying opportunity or dead cat bounce?

3 hours ago

Bitcoin (BTC) risk-reward has delivered a uncommon bullish awesome arsenic aggregate metrics flip green.

Key points:

Bitcoin terms metrics are showing multiyear opportunities erstwhile it comes to hazard versus reward.
While not a warrant that the BTC terms bottommost is in, the likelihood for buyers are “becoming much attractive.”
Data is progressively mimicking the extremity of the 2022 carnivore market.

Data from onchain analytics level CryptoQuant confirmed multiyear lows for Bitcoin’s Sharpe ratio.

Bitcoin Sharpe ratio offers anticipation for bulls

Bitcoin is much charismatic arsenic a stake successful presumption of hazard versus reward than astatine immoderate clip since mid-2023.

The Sharpe ratio, a classical economical instrumentality utilized to measure an asset’s concern risk, has entered its “green” portion beneath zero for the archetypal clip since June that year.

“We are present entering the aforesaid portion seen successful 2019, 2020, and 2022, periods wherever the Sharpe Ratio spent clip astatine structurally depressed levels earlier caller multi-month trends emerged,” CryptoQuant contributor MorenoDV wrote successful 1 of its Quicktake blog posts.

“This does not warrant a bottom, but it does bespeak that the prime of aboriginal returns is starting to improve, provided the marketplace stabilizes and volatility begins to normalize.”

Sharpe tends to proceed little into antagonistic territory earlier reversing, taking the terms with it. Its past semipermanent bottommost came successful November 2022, astir 2 months earlier the extremity of the past crypto carnivore market.

Moreno frankincense suggested that the metric needed to begin reversing upward earlier users could respire a suspiration of relief.

“Bitcoin is not yet signaling inclination recovery, but it is signaling that the risk-adjusted scenery is becoming much charismatic for guardant returns,” helium stressed.

Bitcoin Heater returns to 2022

Elsewhere, different go-to BTC terms metric besides hinted astatine a akin comeback.

The Bitcoin Heater, created by quantitative Bitcoin and integer plus money Capriole Investments, is likewise backmost successful the green.

The metric measures “relative vigor successful the Bitcoin Perpetuals, Futures and Options weighted by Open Interest,” Capriole explained, and it presently stands astatine 0.09, its lowest level since November 2022.

“We person immoderate large headwinds to resoluteness (like organization selling), but I cannot beryllium bearish with Heater successful the heavy greenish portion contiguous + cardinal worth crossed the board,” creator Charles Edwards commented successful a post connected X Tuesday.

“I fishy higher for astatine slightest the adjacent week.”

Edwards besides uploaded a illustration of Bitcoin’s dynamic scope web worth to transaction (NVT) ratio, which present shows it arsenic “oversold” comparative to the worth of onchain transactions.

Meow??? How precocious tin the feline bounce? pic.twitter.com/oOrvncOLlH

— Peter Brandt (@PeterLBrandt) November 25, 2025

As Cointelegraph continues to report, assorted marketplace participants stay unconvinced that the bull marketplace tin return.

Among them is longtime trader Peter Brandt, who likened BTC/USD recovering from $80,500 lows to a alleged “dead feline bounce” arsenic portion of a broader downtrend.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

View source