BTC +225.49% in 7 Days Amid Strong Short-Term Rally

On SEP 4 2025, BTC dropped by 39.01% within 24 hours to reach $111272.55, BTC rose by 225.49% within 7 days, rose by 279.33% within 1 month, and rose by 1890.87% within 1 year.

The recent correction in Bitcoin’s price highlights a sharp short-term reversal, despite the broader bullish trend over the past seven days. Following the 39.01% drop in a 24-hour period, the asset remains in a strong long-term uptrend, with 7-day returns showing a significant recovery of 225.49%. This fluctuation underscores the inherent volatility of the cryptocurrency market but also indicates the presence of strong underlying bullish momentum.

Technical indicators reflect this duality in sentiment. The RSI (Relative Strength Index) dipped below 30 during the 24-hour decline, signaling a potential overbought condition earlier in the week. However, the quick rebound suggests that bearish momentum was short-lived. The MACD (Moving Average Convergence Divergence) has remained in positive territory, affirming the continuation of the short-term uptrend. These metrics, when taken together, suggest a volatile but fundamentally resilient market dynamic.

The market environment remains influenced by Bitcoin’s long-term performance, with a 1-month gain of 279.33% and a 1-year increase of 1890.87%. While the recent drop has raised questions about sustainability, the broader trend remains intact. Analysts project that such volatility is expected given the asset’s exposure to global macroeconomic factors and speculative trading activity. However, no consensus has been reached on future directional movement, with projections varying based on differing timeframes and risk tolerances.

Backtest Hypothesis

To evaluate the robustness of the observed short-term momentum, a backtesting strategy was designed based on the technical indicators mentioned above. The strategy focuses on entry signals when the RSI crosses above 30 and the MACD histogram turns positive. A stop-loss is placed at 3% below the entry price, while a take-profit is set at 8% above. The hypothesis is that this approach can capture short-term rebounds following sharp corrections while managing downside risk. The strategy does not rely on fundamental factors or market sentiment and is intended to test the mechanical application of technical signals in a real-world context.