Bitcoin: Do you honestly think +4.58% a day will ever come back?
Today I played around a bit with the Bitcoin / USD chart.
I wanted to create something like a simple "HODL & DROPL" strategy with clear buy and sell signals.
Nothing fancy, main thing it's crystal clear and it works. A draft is shown on the chart.
I wanted to see how it has performed in the past in % per day in profit/losses, a simple kind of backtesting if you like.
One question came to my mind in the process:
Do you really think that winning streaks with +4.58% per day on average will ever come back?
Is that seriously to be expected, or is it just a dream forever gone...
What do you think?
I wanted to create something like a simple "HODL & DROPL" strategy with clear buy and sell signals.
Nothing fancy, main thing it's crystal clear and it works. A draft is shown on the chart.
I wanted to see how it has performed in the past in % per day in profit/losses, a simple kind of backtesting if you like.
One question came to my mind in the process:
Do you really think that winning streaks with +4.58% per day on average will ever come back?
Is that seriously to be expected, or is it just a dream forever gone...
What do you think?
Comment:
To explain what is happening and how final it is. Take a look at the development of the Bitcoin / Gold ratio over the last five years. The thick black line was always the last support. On March 12, 2020, it was broken down massively and very aggressively and became the new long-term resistance. Thereafter, on 20th March, the price still tried to overcome the new resistance and was rejected. From now on it will go down for a very long time and very deeply. A "long holding strategy" makes no sense at all under these circumstances, unless you are willing to wait many years and want to risk losing everything in the end.
Above all, stay healthy. All the best!