On-Chain Mind: One of the risk-adjusted BTC indicators is recovering at the fastest pace in about a year. BUT the level itself still remains bearish.

According to #OnChainMind, the Risk-Adjusted Composite metric is currently around -0.19 and is still considered oversold. At the same time, over the past 30 days the indicator has surged upward—it's the recovery speed that stands out against the previous year.

This is not a standalone on-chain metric, but an aggregate indicator that combines several return-related coefficients while accounting for risk. And its internal metrics are still weak:

- Sharpe ratio (returns relative to overall volatility): about -0.62, 12th percentile;

- Sortino ratio (returns relative to negative volatility only): -1.17, 8th percentile;

- Calmar ratio (returns relative to maximum drawdown): -0.57, 16th percentile;

- the overall assessment still corresponds to a bearish phase.

So the key signal right now is not where the indicator is, but how quickly it recovers. Historically, the exit of such risk-adjusted metrics from deeply negative zones accompanied the market’s transition from weakness to recovery.

So far, the reversal has not been confirmed. For a bullish scenario, it’s important that the indicator continues to rise and reliably exits the oversold zone.