In December, Bitcoin continued to move within the downward trendline that had been established in the previous months. In the first 15 days of the month, Bitcoin consolidated between $7,000 and $7,700. On 16 December, large sell orders pushed Bitcoin below the $7,000 mark. Over the next few days, Bitcoin continued to decline, breaking through the $6,700 support level. On 18 December, the price action reversed and quickly rebounded above the $7,000 level. Thereafter, the consolidation phase continued, and Bitcoin continued to trade in the $7,000 to $7,700 price range.

After several months of extensive testing, we added a new feature to the strategy: short selling. This feature enables us to make a profit during declines in Bitcoin’s price. We launched it on 17 December and it immediately generated a short sell signal. Consequently, we entered a 100% short position, but the market strongly rebounded on the next day and we closed it with a loss.

On 23 December, the strategy generated a buy signal, but since the market was still in a sideways movement, we decided to enter a conservative 50% long position. We remained in this position until the end of the month.

Bitcoin ended the month with a negative performance of -4.97%. Solidum Bitcoin Momentum Strategy underperformed Bitcoin in December with a negative monthly performance of -9.77%.

Chart 1 (SOBM & BTC)

You can read more about the December market development in our latest Monthly Crypto Commentary.

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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

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