Bitcoin ’10 Best Days’ Analysis by Tom Lee Suggests Why ‘HODLing’ is the Best Strategy

Bitcoin ’10 Best Days’ Analysis by Tom Lee Suggests Why ‘HODLing’ is the Best Strategy

Bitcoin [BTC] has been one of the best-performing assets of the decade. However, a trader knows best that the volatility in the price hasn’t fared well with everyone. This has often motivated the investors to adopt a ‘HODL’ strategy to earn the most from Bitcoin [BTC] as an asset.

Thomas Lee, Co-Founder of Fundstrat, has backed this strategy by statistical data. The parameter used to explain the price characteristics is ’10 best days.’ It corresponds to the days when Bitcoin [BTC] records a substantial green candle.

The performance of Bitcoin on other days has resulted in losses of on an average of 25% since 2013.

Reminder that BTC generally generates all of its performance within 10D of any year. –ex the top 10 days, BTC is down 25% annually since 2013

BTC
Bitcoin Performance in 10 Best day vs. Rest of the Year (Source)

HODLing is the Way to Go

It weighs the performance of Bitcoin on the ten best days vs. the rest of the year. This is essential for traders who short the asset or look for a good entry point. Hence, if a trader happens to miss all those ’10 best days’ of trading, he would incur a loss of 25% on an average. However, if he happens catches all those trades, the average gain since 2013 is 425%.

Bitcoin broke above $8000 on 10th June 2019 gaining by almost 5% from $7700 to $8000. The price corrected to $7900 level after. More importantly, it again came at a time when traders suspected higher percentage of bearish tendencies.

BTCUSD
BTC/USD 4-Hour Chart on Bitstamp (TradingView)

Tom Lee tweeted about the rise,

Is today another ‘10 best days’ for $BTC#Bitcoin? Especially given how so many have pointed out ‘bearish’ technical formations over the past few days…

According to our estimate, if the analysis is applied to 2019, we have already had 4-5 ‘best days’ as Bitcoin broke above significant resistance levels at $4200, $6200, $7500, $8000 and $9000.

BTCUSD
BTC/USD Best Days on 2019

Nevertheless, the possibility of a ‘bull-trap’ cannot be ruled out as well. If the fall occurs, $6k-$7k has been identified as a right buying level. However, a bullish confirmation could also push the price past $10,000.

Where do you think the market is headed? Please share your analysis with us. 

Summary
Bitcoin '10 Best Days' Analysis by Tom Lee Suggests Why 'HODLing' in the Best Strategy
Article Name
Bitcoin '10 Best Days' Analysis by Tom Lee Suggests Why 'HODLing' in the Best Strategy
Description
Bitcoin [BTC] has been one of the best-performing assets of the decade. However, a trader knows best that the volatility in the price hasn't fared well with everyone. This has often motivated the investors to adopt a 'HODL' strategy for warning from Bitcoin [BTC]. 
Author
Publisher Name
CoinGape
Publisher Logo
Nivesh Rustgi 373 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes and reach out to him at nivesh[at]coingape.com

Follow Nivesh @
Show Comments
Nivesh Rustgi 373 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes and reach out to him at nivesh[at]coingape.com

Follow Nivesh @