'Set Your Bot To Buy Every Dump'-Watch This Bitcoin Ratio For Accumulation, Analyst Says

On-chain analyst Joao Wedson wrote, "set your bot to buy every dump," after Bitcoin's (CRYPTO: BTC) 180-day Sharpe Ratio flashed what he called a historical accumulation signal.

The 180-Day Signal Is In—But The 1-Year Is Not

Wedson said the 180-day Sharpe Ratio has flipped into a buying zone, while the one-year Sharpe Ratio has not confirmed the move.

He characterized the current market conditions as moderate risk, but still a more favorable entry point compared to most acquisitions made in the last six months.

Wedson estimates that consistent dip-buying over the next year could anchor an average cost between $60,000 and $64,000. 

He argues that if Bitcoin eventually targets $250,000 in a future cycle, that basis could outperform spot ETFs and equity proxies Strategy (NASDAQ:MSTR).

Additionally, if the annual Sharpe signal appears five to seven times, he expects Bitcoin could lose $60,000 and trade between $48,000 and $52,000. He acknowledged that outcome may not materialize but said historically it has.

Bitcoin Compresses Beneath Key EMAs

Bitcoin is currently trading just below the cluster of the 20 and 50 EMAs, which range from $66,300 to $66,500. 

The price is constrained under a declining stack of EMAs and a downward trendline that has been in place since the highs in February. Each bounce has resulted in a lower high, maintaining short-term selling pressure.

Support is gradually rising within the $63,800 to $64,200 range, creating a tightening triangle against resistance near $69,000.

If the price can sustain a close above $68,000 on the 4-hour chart, it could lead to a move towards $69,000 and possibly the 200 EMA around $71,300. 

Conversely, a drop below $63,800 would likely target $61,000 and shift focus back to the psychological level of $60k.

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