As Bitcoin (BTC) steadily makes its way toward its current all-time high (ATH) of $124,128, optimism seems to be returning to the market. However, fresh data from Binance shows that BTC’s gains barely outweigh the risks posed by the digital asset’s volatility.Bitcoin Maintaining A Risk-Reward BalanceAccording to a CryptoQuant Quicktake post by contributor Arab Chain, latest data from Binance – the world’s leading cryptocurrency trading platform in terms of liquidity – suggests that BTC is currently maintaining a risk-reward balance.Specifically, the Sharpe-like ratio on Binance currently stands at 0.18, a figure very close to neutral territory. To explain, a Sharpe-like ratio measures how much return an investment generates relative to the risk it takes, similar to the Sharpe ratio but often using adjusted benchmarks or risk measures.When the Sharpe-like ratio is above 0.5, investing in Bitcoin becomes attractive since the potential returns outweigh the risks. On the contrary, a negative reading of the ratio discourages investors from taking risks, since volatility exceeds returns.During 2024, when the cryptocurrency market was largely weak and volatile, the Sharpe-like ratio spent most of the time in the negative territory. In contrast, the ratio reached elevated levels, signaling a strong uptrend, at the beginning of 2025.Currently, the Bitcoin market is trading between the two extremes – the market is neither dangerous nor in a powerful uptrend. Notably, the market appears to be in a phase of equilibrium and accumulation, as it trades close to $119,000. Arab Chain added:The latest figures show that the 30-day average return stands at just 0.26%, highlighting that the market is not delivering outsized gains; investors entering now are likely to see only modest profits relative to risk. Meanwhile, 30-day volatility is around 1.37%, which indicates a natural, moderate level of price fluctuation – not excessively calm but not alarmingly unstable either.BTC Needs A Catalyst For Next Leg UpThe CryptoQuant analyst added that the BTC market is currently awaiting a bullish catalyst or strong inflows to extend its uptrend. However, if the Sharpe-like ratio falls below zero again, then a period of price correction may follow.On the flipside, the ratio sustaining above 0.5 for several days – coupled with a price breakout above the $120,000 to $122,000 range on healthy volume – would suggest a fresh upward trend for the top cryptocurrency by market cap.Recent on-chain data hints toward a potential rally setup for BTC. Notably, the short-term holder (STH) spent output profit ratio (SOPR) recently recovered slightly to 0.995.That said, Bitcoin must defend the important $90,000 support level to avoid entering a new bear market. At press time, BTC trades at $118,788, up 1.3% in the past 24 hours.