Bitcoin Risk Signal Turns Positive Again: What Does It Signal After a 54% Drop?

The indicator tracking Bitcoin’s risk direction has shifted back to the positive side as the $70,000 threshold was crossed; the same indicator was in Risk-Off mode prior to a 54% decline in the previous period.

While Bitcoin has recently been trading above the $70,000 level again, the indicator tracked by Glassnode has also seen a change in direction. According to the update, the Bitcoin Vector Signal, an indicator that monitors risk-seeking or risk-aversion sentiment in Bitcoin, has shifted back to Risk-On status.

This reversal is drawing attention as the indicator is remembered for the 54% drop that followed its previous Risk-Off period. After the signal shifted to Risk-Off in October 2025, the Bitcoin price fell approximately 54% from its peak. Bitcoin had previously reached an all-time high of approximately $126,000.

Bitcoin Indicator Flips to Risk-On Again

On the chart, the indicator moved back into the Risk-On zone on August 20. This shift occurred after Bitcoin surpassed the $70,000 level. Consequently, the signal previously associated with a bearish period has returned to the side supporting long positions in Bitcoin.

At the time of the post on September 3, Bitcoin was trading at approximately $77,939.