Bitcoin At $87k: BTC Buying Opportunity Or Dead Cat Bounce? 2025

Bitcoin At $87k: BTC Buying Opportunity Or Dead Cat Bounce? 2025

Bitcoin price tools returned to levels last seen several years ago as calls for a BTC price relief rally continued to grow louder.

Bitcoin (BTC) risk-reward has delivered a rare bullish signal as multiple metrics flip green.

Bitcoin price metrics are showing multiyear opportunities when it comes to risk versus reward.

While not a guarantee that the BTC price bottom is in, the odds for buyers are “becoming more attractive.”

Data is increasingly mimicking the end of the 2022 bear market.

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

Bitcoin is more attractive as a bet in terms of risk versus reward than at any time since mid-2023.

The Sharpe ratio, a classic economic tool used to assess an asset’s investment risk, has entered its “green” zone below zero for the first time since June that year.

“We are now entering the same zone seen in 2019, 2020, and 2022, periods where the Sharpe Ratio spent time at structurally depressed levels before new multi-month trends emerged,” CryptoQuant contributor MorenoDV wrote in one of its Quicktake blog posts.

Sharpe tends to continue lower into negative territory before reversing, taking the price with it. Its last long-term bottom came in November 2022, about two months before the end of the last crypto bear market.

Source: CoinTelegraph