“Sell in May and walk away” is a familiar saying in the investment world, especially among those who buy stocks. It is because this month was sometimes good to take profit, but it also applies to bitcoin (BTC)?
If we check the history, bitcoin ended May in profit for 7 of the last 12 years, according to data from the explorer CryptoQuant. This means that it recorded a price increase in most of May, but not a very big difference. On 5 occasions he has given losses this month, as seen below.
In turn, CryptoQuant emphasizes that the size of the green candles (with the month of May) seems to be decreasing. This behavior “indicates a potential reduction in bitcoin’s maximum earnings.”
Analyzing this, the explorer also emphasized that, for the last two years, May was in the red (loss). Such a situation suggests that “a big sell-off” took place this month, which dragged the price down.
With all this in mind, CryptoQuant concludes that “History shows no clear pattern for bitcoin” in the fifth month of the year. Therefore, the famous saying “sell in May and go” does not seem to necessarily apply to investing in cryptocurrencies.
Conversely, according to the data of the company Stock Analysis, May tends to be a green month for stocks with, for example, an average increase of 0.97% in the S & P 500, considering its behavior from 1980 to 2019. Like a stock index collected actions. of the top 500 publicly traded companies in the United States and, due to its historic behavior this month and the previous semester, the aforementioned has become famous among its traders.
From May to November there is usually no major progress in stocks
During the story, The index S & P 500 appreciated an average of 7% from November to April, while in the following six months, from May to October since 1990, it has underperformed, hovering around 2%, according to data compiled by the asset management company Fidelity. According to the company, this has to do with a seasonal business problem, where they fall in the summer (in the northern hemisphere), impacting the markets.
These performances from November to April made the adage “sell in May and go away” more valid for the stock market. And, since these assets are often correlated with bitcoin, they could also take place for cryptocurrency investors as seen in the last half of the year. According to Trading View, bitcoin appreciated more than 80% from USD 15,000 in November to USD 28,000 today.
In any case, it should be noted that past performance does not guarantee future performance of assets such as bitcoin and stocks. In addition, its volatility will always depend on the context. That is why it is always necessary to have a broad vision of different analysis, as reported by CriptoNoticias, in order to anticipate possible price movements.