Bitcoin Momentum Investing — Does Buy the Dump, Sell the Pump Work?

This week as equities markets plummeted across the globe, Bitcoin (BTC) price also faced a sharp correction. Over the past week Bitcoin price has dropped $1,500 and currently trades at $8,454, a new four week low. 

Since the start of the year Bitcoin and most major altcoins showed an impressive gain in price, leading analysts to suggest that a bull-run was brewing for 2020, an idea now being challenged by the current pull-back. 

As has been the norm, on one side, there are bullish enthusiasts aiming for sky-high valuations; on the other, there are more conservative analysts raising questions about the viability of crypto. The large swings and explosive behavior of the crypto market is what makes them an attractive investment option when compared to other assets but the indecisiveness of the current market is also forcing investors to expand their strategies and adjust them frequently.

Cryptocurrency market weekly overview. Source: Coin360

One strategy based on this underlying…