Despite the recent downturn, Bitcoin has a year-to-date return of 111 percent showing that "HODLing" could be a lucrative strategy.
After peaking at nearly $14,000 on June 26, Bitcoin entered a corrective phase that has seen its price drop over 50 percent.
The high levels of volatility that Bitcoin experienced throughout the year could have made it difficult to perfectly time trades, according to Skew, one of the leading providers of crypto derivatives data analytics.
Skew maintains that those who dared to trade Bitcoin in 2019 were playing a "Dangerous game."
The 24 weeks that Bitcoin surged represent a higher percentage of gains compared to the losses incurred when this crypto went down.
Based on the 2-year moving average multiplier indicator, Philip Swift, the founder of Look Into Bitcoin, believes that there are five stages in every Bitcoin market cycle.
Under the premise of a cyclical market, Sawcruhteez, a financial analyst and swing trader, said that Bitcoin went back into the first stage of its market cycle.
"Buying Bitcoin when the price drops below the 2-year MA has historically generated outsized returns."
Although the "Accumulation" phase usually extends for a few weeks before an explosive move takes place, it seems like HODLers will soon see their gains increase further.
Now, it remains to be seen when Bitcoin will move above the 2-year MA once again to enter the second stage of the market cycle, dubbed Breakout.
HODLers are in profit as Bitcoin keeps a YTD return of 100%
pubblicato su Dec 6, 2019
by Cryptoslate | pubblicato su Coinage
Coinage
Menzionato in questo articolo
Notizie recenti
Vedi tutti
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.