Field Notes

Is Bitcoin Back?

Field Note

Clients keep asking me whether Bitcoin is back.

I don’t know. We don’t run a house view on where Bitcoin goes next.

What I can do is check whether this kind of move has historically meant anything. So I ran a simple test: every time Bitcoin gained more than 15% in three days since 2020, what happened next?

Here is what I found.

1. It Happened 21 Times Since 2020 (BTC >15% In 3 Days)

2. It Was Highly Positive Signal

HorizonAverageMedianPositive
7 days+4.46%+4.03%76.2%
30 days+20.17%+18.79%90.5%
3 months (90D)+46.66%+26.44%90.5%

3. Forward Path After The Signal Is Very Stable

The strongest continuation is in first 40 days.

4. It’s Also Regime Dependent And Skewed By 2020/2021

5. Even Since 2022 The Pattern Is Still Pretty Strong…

6. Just The Impact To PnL Is Lower

7. Limited Data Set

21 samples only, interesting statistics anyway.

A Systematic Approach To Crypto

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Historical analysis only, based on 21 qualifying observations since 2020. Not investment advice and not a recommendation to buy or sell any asset. Past performance does not guarantee future results.

Disclaimer: All information provided by Robuxio.com is intended solely for the purpose of studying topics related to crypto trading and is in no way intended as a specific investment or trading recommendation. We are not a registered broker or investment advisor. Trading and investing in financial instruments (and cryptocurrencies in particular) is high risk. The decision to trade cryptocurrencies is the responsibility of each individual and only they are fully responsible for their decisions.

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