Bitcoin Diminishes Risk Signal, Expert Warns About Accumulation

Bitcoin's (BTC) recent recovery to the $111 range brought signs of relief after days of increased selling pressure. The move occurred after the market's leading cryptocurrency hit a low of $107.270 and managed to advance to a local high of $111.787. The move was driven by a decline in short-term selling and increased retail accumulation.

Amid the price improvement, some analysts interpreted the moment as an indication of market stabilization. Among them, the trader known as Bitcoin Vector highlighted that the Risk Diversion Signal, which had been worrying investors, has weakened.

According to his analysis, Bitcoin's risk signal has entered a low-risk range, paving the way for a more optimistic price action. Vector explained that, despite the correction, the market hasn't been severely pressured. Only about 9% of the total BTC supply is in negative territory, a figure considered low compared to other cycles.

The Risk-Off Signal is easing and retreating toward a low-risk regime, while $ BTC is breaking a price compression that has been in place since the $124.5K all-time high.

Risk has unfolded as follows:

1⃣Lifeline Hold & Stabilization: BTC stays in a range ($112K–$121K); later,… pic.twitter.com/3RKll8hKSM

— Bitcoin Vector (@bitcoinvector) September 2, 2025

During periods of sharp declines in the past, around 25% of the supply registered losses at previous cycle bottoms, and during bear market phases, this percentage exceeded 50%. For the analyst, this shows that the current downward pressure has been limited and that Bitcoin remains relatively resilient in the face of recent volatility.

Another relevant point is BTC's current attempt to break out of the price compression that has been dragging on since the correction following the all-time high near $124. So far, this consolidation movement indicates that the market has not yet undergone a complete capitulation, which could represent a deeper adjustment before new upward trends.

In the short term, the combination of reduced selling pressure, increased retail accumulation, and a stabilizing risk signal could provide more solid ground for Bitcoin to maintain support above $111, reinforcing the perception of gradual confidence among investors.