> ## Documentation Index > Fetch the complete documentation index at: https://docs.amberdata.io/llms.txt > Use this file to discover all available pages before exploring further. # Reserve Risk *** # Description **Reserve Risk** is an indicator that measures the confidence of long-term holders relative to the current price of Bitcoin. It reflects the balance between price and conviction. A low Reserve Risk value suggests high confidence among long-term holders while the asset is undervalued. Conversely, a high Reserve Risk value suggests low confidence during periods of elevated price, indicating increased speculative risk. Reserve Risk is designed to identify optimal periods for capital deployment based on long-term holder sentiment. Historically, periods of low Reserve Risk have been associated with outsized long-term returns, while periods of high Reserve Risk have preceded market corrections or sustained downtrends. Coverage is currently available for **Bitcoin (BTC)** only. *** # Use Case Reserve risk can help traders understand when it is a good time to buy and researchers to analyze the confidence of long-term holders. *** # Methodology Reserve Risk = Price / HODL Bank HODL Bank = cumulative sum(price - median value of Coin Days Destroyed) *** ***