The AHR999 HODLing Index is a dollar-cost averaging investment strategy created by Weibo user ahr999.
Its purpose is to assist Bitcoin investors in making investment decisions based on timing strategies.
This index implies the short-term return rate of Bitcoin investment and the deviation between Bitcoin price and expected valuation.
From a long-term perspective, the Bitcoin price and block height are positively correlated. Meanwhile, by utilizing the advantages of dollar-cost averaging, users can control short-term investment costs and keep most of their investments below the Bitcoin price.
According to backtesting of the index, if the index is below 0.45, it is more suitable for buying the dip. If it is within the range of 0.45 to 1.2, it may be suitable for dollar-cost averaging Bitcoin. If it is higher than This range, it means it is not a good timing for dollar-cost averaging.