HODLers are in profit as Bitcoin keeps a YTD return of 100%

Despite the recent downturn, Bitcoin has a year-to-date return of 111 percent showing that "HODLing" could be a lucrative strategy.

After peaking at nearly $14,000 on June 26, Bitcoin entered a corrective phase that has seen its price drop over 50 percent.

The high levels of volatility that Bitcoin experienced throughout the year could have made it difficult to perfectly time trades, according to Skew, one of the leading providers of crypto derivatives data analytics.

Skew maintains that those who dared to trade Bitcoin in 2019 were playing a "Dangerous game."

The 24 weeks that Bitcoin surged represent a higher percentage of gains compared to the losses incurred when this crypto went down.

Based on the 2-year moving average multiplier indicator, Philip Swift, the founder of Look Into Bitcoin, believes that there are five stages in every Bitcoin market cycle.

Under the premise of a cyclical market, Sawcruhteez, a financial analyst and swing trader, said that Bitcoin went back into the first stage of its market cycle.

"Buying Bitcoin when the price drops below the 2-year MA has historically generated outsized returns."

Although the "Accumulation" phase usually extends for a few weeks before an explosive move takes place, it seems like HODLers will soon see their gains increase further.

Now, it remains to be seen when Bitcoin will move above the 2-year MA once again to enter the second stage of the market cycle, dubbed Breakout.