BTC -17.09% in 24H Due to Short-Term Correction Amid Strong Long-Term Gains

On SEP 3 2025, BTC dropped by 17.09% within 24 hours to reach $111510.58, BTC rose by 247.99% within 7 days, rose by 301.95% within 1 month, and rose by 1917.04% within 1 year.

A notable correction in Bitcoin’s price unfolded over the past 24 hours, marking a 17.09% decline to a current level of $111,510.58. This sharp drop comes amid a broader backdrop of robust price performance over the last 7 days, where BTC appreciated by 247.99%. The move highlights the volatile nature of the asset, particularly in the wake of substantial gains across both intermediate and long-term timeframes.

The one-month return remains a key highlight, with the digital asset surging by 301.95% from its value a month ago. This performance has drawn attention from both retail and institutional participants, reinforcing Bitcoin’s role as a high-volatility, high-potential asset class. The 1-year return of 1917.04% further underscores the dramatic price trajectory, indicating sustained momentum despite the recent pullback.

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Technical indicators suggest a potential short-term bearish shift, with the RSI nearing oversold territory and the MACD line crossing below the signal line, signaling a possible continuation of the current downward trend. These signals are typically associated with momentum shifts in the near term, although they do not negate the overall bullish pattern established over months. Analysts project that the current price may find support at key psychological levels, which could serve as a catalyst for a reversal or consolidation phase.

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The price movement aligns with a broader narrative of market correction following a period of aggressive accumulation and speculation. With Bitcoin having surged across all major timeframes, the recent drawdown appears to be a natural correctionary phase, allowing for profit-taking and realignment among traders and investors.

Backtest Hypothesis

A backtesting strategy has been designed to evaluate the viability of a rules-based approach to managing Bitcoin’s price volatility. The strategy leverages the RSI and MACD as core indicators, initiating a short position when RSI exceeds 70 and the MACD line crosses below the signal line. Conversely, a long position is triggered when RSI falls below 30 and the MACD line crosses back above. The strategy aims to capture both momentum shifts and reversal opportunities, with position sizing and stop-loss levels calibrated based on volatility metrics. This hypothesis will be tested against historical data to assess its effectiveness in navigating BTC’s price action under similar market conditions.

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