Here are two bitcoin trading strategies using the 5 day exponential moving average crossing the 20 day exponential moving average by using the BTCUSD pair the other is using the Grayscale Bitcoin Trust ticker symbol $GBTC traded on the over the counter market (OTC). These are both examples of short term trend trading signals for capturing moves to the upside and going to cash if price starts moving down. 

Below is a backtest based on buying the ^BTCUSD when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes back under the 20 day EMA:

(Price data used from the Kraken platform).

BTCUSD chart

BTCUSD backtest
Chart and backtest data courtesy of TrendSpider.com

Below is a backtest based on buying the Grayscale Bitcoin Trust $GBTC (OTC) when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes back under the 20 day EMA:

GBTC test

GBTC crossover backtest
Chart and backtest data courtesy of TrendSpider.com

These backtested signals show how Bitcoin can be a great asset for trend trading and used to diversify your trading system.  

This post is for informational purposes and is not investment advice.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.