A recent report from the crypto-derivative platform Zubr found that despite being extremely volatile compared to traditional asset classes Bitcoin (BTC) maintains a “market balance” most of the time.
The report appeared just a few days later Bitcoin surpassed the $ 12,000 mark and its volatility eventually recovered from a multi-year low.
Use of data from CoinAPI, a data provider for the cryptocurrency market, Zubr discovered that changes in Bitcoin prices are often accompanied by almost symmetrical movements in the opposite direction, which creates opportunities on both the positive and negative sides.
According to Zubr:
“Most of the time, Bitcoin almost always mimics the exact percentage increase with a percentage decrease on the same day.”
Bitcoin: Daily percentage change from higher opening to lower opening. Source: Zubr
Usually this is mirror effect takes place on the same trading day, but Zubr discovered that too It can also occur over long periods of time.
This means that in the short term Bitcoin’s recent rally to $ 12,000 could see a similar decline to $ 10,000 and a number of other factors indicate the possibility of this decline.
What are the dealers?
Developing greater awareness of the market balance and its relationship to the Bitcoin price can be extremely revealing if it is incorporated into a daily trading strategy. especially given the fact that the volatility phenomenon discussed above has been constant since 2017.
Traders can control volatility and make profits by trading Bitcoin daily in the short and long term. However, this is just one of the many things to keep in mind.
According to Zubr:
“The data effectively shows that lower risk opportunities are possible if one relies on historical events and considers this change to be essential for the commercial nature of Bitcoin. For example, if Bitcoin increases by 10% and falls back on it History shows that there is an overwhelming probability (over 50%) that the price will drop between 9 and 12% the same or the next day. “
While they are not conclusive on their own, This data can be used in the development of a strategy for intraday and momentum trading styles.
In the meantime, only time will tell us whether Bitcoin will maintain its current market balance or stay above the $ 12,000 mark.