$BTC Mean Reversion Strategy

Price often returns to its mean after extreme moves. Mean reversion traders exploit this by:

— Detecting overbought/oversold levels using tools like Bollinger Bands or Keltner Channels

— Buying on dips or selling on spikes near the 3rd standard deviation

— Targeting a return to the 20-day moving average

— Using stop-loss in case the trend continues

It's not foolproof — but with an adequate risk/reward ratio, it is powerful in range-bound markets.