The momentum effect is that if the bitcoin price rises continuously over a week, it may keep growing for the next week. This is a common feature of almost all known asset classes, and we have found that the momentum effect strongly affects the cryptocurrency. We have designed a simple investment strategy in which investors buy Bitcoin only when their price increases by more than 20% from the previous week. This strategy has excellent returns and a very high Sharpe ratio.

Bitcoin prices cannot be easily predicted. Lots of indicators that can cause price movements in Bitcoin. We all cannot predict precisely because everything at this time is mostly just speculation. The movement of the Bitcoin price is expected to continue to increase every year, so we must be more familiar and try to implement the use of Bitcoin more often.