After a few months of high volatility, where bitcoin reached a position in April, the famous cryptocurrency has managed to stabilize in recent times with values above but always close to $30,000.
A value for which the analysts of the cryptographic industry, attending to the options markets and the movements of the investors. At the moment, the price of bitcoin is moving around $32,000.
For Nicholas Colas, co-founder of DataTrek Research, there is a pattern that allows knowing the best time to buy or sell bitcoins. The analyst analyzed the moving average of the price deviation of the last 100 days since 2014 and found that . On the other hand, when volatility is low, it usually gives the investor a return.
In short, buying when the volatility of bitcoin moves only 2 or 3% on average in the last 100 days tends to ensure profits, while when it is high it is time to sell. As he explains, the volatility of the last 100 days is still above 3%, which means that it is not low enough to bet in the most sensible way on an investment.
“It’s worth noting that this pattern is the exact opposite of what we see in equities,” Colas added. “Also, as market capitalization increases, you generally see less volatility. That’s not the case with bitcoin,” he adds.
“Bitcoin needs to be ‘boring’ to create a sensible entry point for a long-term trade or investment that doesn’t produce stomach-churning volatility in the short term. The good news from the historical record is that day will come.” , he concludes.
Facebook Comments
Disqus