Bitcoin has rallied back to retest the $21,000 resistance.
Still, bitcoin risk signals provided by Glassnode and SwissBlock technologies hit an annual high on September 5th and are still at 87 out of 100 after today's pump.
The bitcoin risk signal measures the degree of risk of a significant drop in the price of bitcoin. The score varies between 0 and 100.
Between 0 and 25 is a risky environment and above 25 is a high-risk environment. A reading of 0 indicates a shallow relative risk of a significant decline.
Historically, bitcoin has led the market in terms of price direction and relative security. However, throughout the week leading up to the merger,
Ethereum has taken control of the market with the industry following the price of ETH.
Over the past seven days, Bitcoin has remained at 100 on the Bitcoin risk signal, indicating higher risk and further downside. However, bitcoin fell 7.5% on September 6th,
while the signal was at its all-time high. Nevertheless, while the score is well above the safety zone of 25, the chart shows that traders act cautiously.