The post A Bias strategy to exploit the correlation between Bitcoin and Ethereum, the altcoin par excellence appeared on BitcoinEthereumNews.com.

In this article, we will analyze a peculiarity of the cryptocurrency market, namely the correlation that exists between the price trend of Bitcoin (BTC) and that of Ethereum (ETH), the main altcoin in the market. We will try to leverage this statistic to create a systematic trading strategy, working on the Ethereum-Bitcoin (ETH-BTC) pair. The characteristic that one wants to analyze is linked to an alleged recurring behavior (otherwise known as Bias) that would manifest itself during the course of the week: one wants to verify if it is true that it is convenient to hold Bitcoin (BTC) from the beginning of the week until the weekend, and convert it into Altcoin (therefore into Ethereum in this example) during the weekend, when indeed Bitcoin seems to take a break in favor of the Altcoin which instead appreciate.  The concept of bias, meaning a recurring behavior of prices over time, is one of the simplest triggers on which it is possible to build a trading strategy. It is a market inefficiency that reoccurs with a certain regularity, for example, in specific time slots or days of the week. When it extends to longer periods, it is usually referred to as seasonality. Correlation between Bitcoin and Ethereum: price analysis over time To verify if this recurring behavior between Bitcoin (BTC) and Ethereum (ETH) truly exists, the Bias Finder will be used in the preliminary phase, a tool developed internally at the Unger Academy to simplify the search for biases on futures. The Bias Finder, in fact, based on the historical data of a certain instrument, can quickly analyze trends on candles with a variable duration between 5 and 60 minutes. Once the instrument and the time frame are selected, it is then possible to evaluate different time horizons: daily (Intraday), weekly (Weekly),…

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Filed under: News - @ January 18, 2025 7:20 am