Hodl Bitcoin Historically Generates Its Yearly Gains in 10 Days, Says Tom Lee

Hodl  Bitcoin Historically Generates Its Yearly Gains in 10 Days, Says Tom Lee

Bitcoin generates all of its yearly performance gains within just ten days. Miss those 10 days and your average is 25% down annually since 2013. Today was one of those days. But are there more to come? Lets take a look.

As Bitcoin skyrocketed into the weekend, Tom Lee from Fundstrat was on hand with an interesting statistic. Namely, that Bitcoin generally generates all of its performance within just ten days. Miss those 10 days and your average is 25% down annually since 2013.


Well That Puts A Bit Of A Downer On Things

Does it? Its a great (in terms of interesting, not yay!) statistic, but what does it actually mean? And how would you calculate a figure like that?

Luckily, Lee included a useful diagram with his tweet.


Right, so lets see what weve got here. Top ten days percentage change, added together, so we have the overall percentage gains over the 10 best performing days. Well, that makes sense; so on 2017s best ten days, on average the price more than doubled (113.6% gain).

But what about the rest of the days? Surely it would make sense to do the same thing, and simply add up the percentage change per day?

But lets say we had two days, one with a 50% gain and one with a 50% drop. By adding the percentage changes we would get zero percent net change. But in actual fact, the price would be only 75% of its original value.


So, I Havent Missed All The Pump This Year Yet?

Only time will tell. This statistic doesnt actually make any predictions about that and is of limited use for the longer term.

For those who dip in and out of bitcoin this may be of concern as timing the market is rather difficult.

However, this leads to Lees suggested tactic to ensure those 10 best performing days arent missed. HODL for the other 355 days.

So HODLers have nothing to fear, and for day traders the choice of 10 days seems fairly arbitrary. And past performance is no guarantee of future results. Especially since some past performance will certainly never repeat and will forever be reserved for the earliest adopters.


Golden Cross Foreshadowed The Price Surge

Lee also celebrated the fact that BTC price 00 has moved above its 200 day moving average as a positive sign. This is whats known as a golden cross and is considered to be a very positive sign. The last time this happened, it marked the bottom of the previous bear market.

Other indicators have also flashed bullish in recent months, forcing many bearish traders to change their tune.

Moreover, Bitcoin performs significantly better when the price is above the 200MA, with a win ratio of 80% vs 36% when below.

This suggests that we may have several more big days on the way.

Is hodling actually proving to be the best investment strategy for Bitcoin? Share your thoughts below!

Images via Shutterstock, Twitter/@fundstrat

The post Hodl Bitcoin Historically Generates Its Yearly Gains in 10 Days, Says Tom Lee appeared first on Bitcoinist.com.

11.05.2019 / 08:30 17
Bitcoin Accumulation Could Continue Until July if Previous Patterns Repeat Bitcoin Accumulation Could Continue
The best time to accumulate is when prices are low. Even though Bitcoin has had a huge rally this week the digital asset is still 75% down from its
Crypto Market Wrap: Another $5 Billion Dumped as New 2019 Lows Are Hit Crypto Market Wrap: Another $5 Billion
Market Wrap Crypto markets dumped for the third time in three days, Ethereum, BCH and BSV hurting, Tron recovering. Following a weekend of very
BTC Price Historic Yearly Lows Reveal How Bitcoin Hodlers Are Created BTC Price Historic Yearly Lows Reveal
BTC price is currently sitting at yearly lows though it is still around 400 percent higher than 2017s low. In fact, a historic look at yearly lows
Crypto Market Jumps $40 Billion in 2 Days as Bitcoin, Ether and XRP Record Major Gains Crypto Market Jumps $40 Billion in 2
The cryptocurrency market has added more than $40 billion within a 48 hour period as major digital assets bitcoin, ether, Ripple, and Bitcoin Cash
A New Yearly Low Looms as Crypto Markets Continue Bleeding A New Yearly Low Looms as Crypto
FOMO Moments Crypto land is in pain; Bitcoin Cash, EOS, Cardano and Monero are all hurting. The downward pressure has continued as the week draws to
Bitcoin Price Bull Tom Lee Says Hodl on Amid Market Slump for Later Gains Bitcoin Price Bull Tom Lee Says Hodl on
Fundstrats Thomas Lee is emerging as a voice of reason for cryptocurrency investors even as bitcoin continues to trade in the doldrums.JPMorgan
Comments (0)
Add a comment
Comment on