There is a theory, called the "Halloween effect," which says that stocks and other assets such as Bitcoin work best until October 31 to May, and then do so during the second half of the year.
Will the price of Bitcoin benefit from that effect. Or is the idea nothing more than a reasonably creepy superstition for this time of year?
What is the effect of Halloween?
Investors and traders use many tools, such as technical and fundamental analysis, to try to determine the strength or weakness of an asset before establishing a purchase order. Some analysts use more unconventional methods, such as dates, cycles, mathematics, and even astrology.
A general principle is also that each year, assets beginning in November will have a superior return and will provide greater returns on investment until May. They will be in the second half of the calendar year.
This theory is called The Halloween Effect, The Halloween Indicator or The Halloween Strategy and suggests that investors will be generously rewarded for buying a property during the winter months. Then, the trader or investor is encouraged to "sell and walk away" in May, the second part of the time-based strategy of the market.
But is this also true for Bitcoin markets? The period that Bitcoin's last bull market returned from May 1 to October 31. Suggesting that the theory may be accurate, with only one period in the Bitcoin price chart.
Bitcoin Price Gains On Average Nearly 50% Per Halloween Through May Timeframe
While the Bitcoin bear market came to an end on May 31, 2015, Bull Run until May was a start for cryptocurrency investors. Which generated growth of more than 41% for young and emerging real estate investors.
During the next time frame of the Halloween effect that extended from October 31, 2016, to May 1, 2017. The Bitcoin bull market was underway and gave investors a 117% return on investment. However, investors listened and sold in May, as they were told, they lost an increase of 335%.
Between October 31, 2017, and May 1, 2018, Bitcoin set its maximum time of $20,000 and withdrew to $5,800 at that time. However, on May 1, 2018, Bitcoin was still in place since the last Halloween. It increased by more than 52%. Selling and moving in May may have worked well in this case, as Bitcoin entered a deep bear market after this.
From October 2018, until May 2019, it was the only decrease after Halloween. Which resulted in a price drop of -12.5%.
This Halloween, Bitcoin is marketed in an interesting way at the same price as of May 1, 2018. The crypto asset is currently priced at $9,200 per BTC. The third-largest asset gain in a single day in its history.
Can massive bomb investors attract the effect of Halloween? This is possible: Bitcoin grew by an average of 50% from October 31 to May 1 in each year analyzed. With Bitcoin set to stop in May 2020, the increase is likely to be greater this time. And with the prices that are expected to reach $55,000 per BTC, according to a highly quoted flow stock model. It could achieve the highest Halloween effect in Bitcoin, which was priced at $55,000 according to forecasts. 497% discount on current prices.
No comments:
Post a Comment