This module analyzes weekly returns of Bitcoin prices.

btc_weekly_returns.py

"""
This module analyzes weekly returns of Bitcoin prices.
"""

import pandas as pd

# Constants for weekdays
MONDAY = 0
FRIDAY = 4

def load_data(filename):
    """Load data from CSV and resample to daily data."""
    df = pd.read_csv(filename, parse_dates=['timestamp'])
    df.set_index('timestamp', inplace=True)
    daily_df = df.resample('D').agg({'open': 'first', 'close': 'last'})
    daily_df['weekday'] = daily_df.index.dayofweek
    return daily_df

def calculate_weekly_returns(daily_df):
    """Calculate weekly returns based on opening price on Monday and closing price on Friday."""
    mondays = daily_df[daily_df['weekday'] == MONDAY]
    fridays = daily_df[daily_df['weekday'] == FRIDAY]
    weekly_returns = []
    for monday in mondays.index:
        next_friday = fridays.index[fridays.index > monday][0] if any(fridays.index > monday) else None
        if next_friday:
            buy_price = mondays.loc[monday]['open']
            sell_price = fridays.loc[next_friday]['close']
            weekly_returns.append((sell_price - buy_price) / buy_price)
    return pd.Series(weekly_returns)

def display_results(weekly_returns):
    """Display the results of the analysis."""
    print("Total Weeks Analyzed:", len(weekly_returns))
    print("Average Weekly Return:", weekly_returns.mean())
    print("Positive Weeks Percentage:", (weekly_returns > 0).mean() * 100, "%")
    print("Negative Weeks Percentage:", (weekly_returns < 0).mean() * 100, "%")

def main():
    """Main function to run the analysis."""
    try:
        daily_df = load_data('btc_1.csv')
        weekly_returns = calculate_weekly_returns(daily_df)
        display_results(weekly_returns)
    except FileNotFoundError:
        print("The file 'btc_1.csv' was not found.")

if __name__ == "__main__":
    main()
    
# Results using https://www.gigasheet.com/sample-data/bitcoin-price-2014-2023
#Total Weeks Analyzed: 460
#Average Weekly Return: 0.01164359062566534
#Positive Weeks Percentage: 56.95652173913044 %
#Negative Weeks Percentage: 43.04347826086957 %