Buying Bitcoin at the end of the first day of the Chinese New Year and selling after ten trading days guarantees an average profit of more than 9%, as found out by Markus Thielen, Director of Research and Strategy at Matrixport.
Over the past eight years, from 2015 to 2022, the scheme yielded a return in 100% of cases, the expert noted.
The operation would have yielded its highest profit in 2017 — 15%. Even in 2018, during the previous crypto winter, the investor earned a return, albeit only 1%.
In 2023, to execute the scheme one would have to buy digital gold on January 22, and sell the assets after 10 days — February 1.
On Sunday, the day of the proposed investment, Bitcoin traded near $22,900. The asset did not hold the level of $23,000 reached on Saturday for the first time since August 2022. According to Thielen’s research, the price of the cryptocurrency by the start of February should approach $25,000.
OTC platform risk director at B2C2, Adam Farting, described this level as key resistance for the continuation of the current rally.
According to Thielen, the ideal window for accumulating average returns when buying Bitcoin at the start of the Chinese New Year is 15-19 days. Typically during this period the cryptocurrency appreciates by about 12%.
Overall, the expert regards the start of the Spring Festival as ‘an attractive time’ to enter long positions.
Earlier in January, Bloomberg strategist Mike McGlone noted signs of Bitcoin forming a bottom in the run-up to a bull phase in 2019.
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