The Return Of This Strategy In Bitcoin Has Been 200% In The Last 5 Months
What would be the result if the position was taken in the direction of selling during Asian trading hours and buying during American trading hours? The answer to this question spilled over to the chart.
Those who follow Bitcoin closely have noticed that the price shows excessive movement, especially during some hours.
Many studies have previously been conducted on the relationship between Bitcoin’s price movements and the hours of the day. According to these studies, the hours when Bitcoin is most variable are between 03.00 – 04.00 Turkish time. In particular, 04.00 is a time when daily lows and high prices are seen much more than at any time of the day. The reason for this is based on the fact that this time is the beginning of the evening in North America and the beginning of the working day in Asia.
Recently, Bitcoin has often risen in the hours when Americans trade, while it has fallen in the hours when Asians trade. And what would have happened if the transaction had been opened accordingly? A graphic shared by Avi Felman of cryptocurrency investment firm BlockTower shows the stunning picture. Accordingly, if a trader had taken a sell position during Asian hours since 2017, that is, a short position, and a buy position during American hours, that is, a long position, the total return would have been over 800 percent. In recent months, the return of this strategy has been largely ahead of Bitcoin’s price growth.
It is remarkable that this trend is more pronounced in 2020. The return of this strategy in 2017 is mostly negative, while a significant positive has been observed, especially in the last 5 months. Another inference that can be made on the chart is that this year, US people aggressively buy Bitcoin, while sales come from Asia. The sales in Asia are said to have been driven by Bitcoin miners.