Coutts has finalized the first version of his 'Bitcoin Cycle Risk Framework,' focusing on identifying critical phases of risk across Bitcoin's cycle.
The risk framework incorporates key market variables such as liquidity, leverage, and behavioral patterns to provide a clearer picture of Bitcoin's macro cycle.
The model tracks why Bitcoin moves and combines indicators like GRS, DRS, and NPRS to visualize market conditions and potential shifts in sentiment and risk appetite.
While not offering precise market timing, the model serves as a robust risk assessment tool for traders and analysts by helping understand when the market may be overextended or entering a period of heightened caution.