In this project we evaluate the overall development on the BTC price using the halving periods as time references. We download the data from Barchart.com which is the website that store the highest amount of data and include most of the historical data for BTC.
Given the technology behind Bitcoin in which there are plenty of resources online there are halving periods that divide the amount of data that BTC is allow to be mined roughly every four years. see: https://www.investopedia.com/bitcoin-halving-4843769
Theoretically speaking every four years there are some movements on BTC that follows this event, in which we can anticipate an increase in price given that it becames more scarcity every four year.
In this project we test the different time periods in which each halving occurs to identify any possible trend and evaluate if this can be categorize as a usual behavior.
We test the performance on BTC price by controling volatility in each period to get a better understand about what to expect in each of the halving periods. We also follow several approach to analyze BTC price from 2013 to 2021 which can be found in the R-Markdown document in the R-script folder.
The behavior of BTC follow the expected distribution in which a ciclical behavoir is detected. Moreover, on December 2021 we expect the BTC price goes to the 90-130K interval based on the last movements, after that we expect a significant drop in BTC price from the peak to around 25K in June 2022.