Reserve Risk is a Bitcoin chart that allows us to visualise the confidence amongst long term BTC holders relative to the price of Bitcoin at a given moment in time.
When confidence is high and price is low then there is an attractive risk/reward to invest in Bitcoin at that time (green zone). When confidence is low and price is high then risk/reward is unattractive (red zone).
Investing in Bitcoin during periods where Reserve Risk is in the Green Zone, as seen currently, has produced outsized returns over time.
