This plot illustrates the normalized risk levels for Bitcoin (BTC) and Ethereum (ETH) based on their 20-week Simple Moving Averages (SMA). The risk is calculated as the difference from the 20-week SMA, normalized by the range of differences observed. The normalized risk values range from 0 (lowest risk) to 1 (highest risk), providing a comparative view of market volatility for both cryptocurrencies.
The analysis covers data from January 2010 onwards, offering insights into market conditions and potential risk for investors.
Shaded green areas represent low risk, shaded yellow areas represent moderate risk, and shaded red areas represent high risk.