BAT -45.93% in 24 Hours Amid Sharp Volatility

On SEP 6 2025, BAT dropped by 45.93% within 24 hours to reach $0.1517, BAT dropped by 84.97% within 7 days, rose by 66.36% within 1 month, and dropped by 3483.68% within 1 year.

The rapid decline in BAT over the past 24 hours reflects an intensified sell-off phase, which has followed a month-long rebound that saw the asset gain over 60%. The recent drop has wiped out much of the recent gains, pushing the price back toward levels seen in early summer. The sharp correction aligns with broader market sentiment shifts, with investors retreating from high-risk positions in the wake of macroeconomic uncertainty and tightening monetary conditions.

Technical indicators suggest the asset is currently in a bearish phase. Short-term momentum has weakened, with key support levels now under pressure. The 7-day and 14-day RSI readings indicate an oversold condition, suggesting the potential for a temporary reversal. However, the long-term trend remains bearish, as demonstrated by the significant 1-year decline.

The recent volatility is a continuation of a trend that has persisted for much of the year. After experiencing a sharp drop in early 2025, the asset attempted a recovery that lasted about a month, only to face renewed downward pressure in recent weeks. The 24-hour drop is one of the most severe in the asset’s recent history and highlights the heightened sensitivity of the market to external factors, including broader market risk-off conditions.

Backtest Hypothesis

The backtesting strategy under analysis is designed to evaluate a mean-reversion approach, which would have been activated based on the 7-day and 14-day RSI indicators. When RSI dips below 30, the strategy initiates a long position, assuming a short-term rebound. Conversely, when RSI crosses above 70, the strategy exits the position to capture gains or limit losses during overbought conditions. The strategy also includes a stop-loss mechanism to manage downside risk during extended bearish trends.

Given BAT’s recent RSI behavior and the current price environment, this strategy would have entered and exited multiple positions in the recent correction. While the 24-hour drop could have triggered a stop-loss, the subsequent partial recovery might have allowed for a small profit or minimized the loss. The effectiveness of the strategy, however, remains subject to further testing under varying market conditions.