Bitcoin: USD/BTC (BTC=X) Is Still 2020’s Top Asset
Bitcoin has started the day out well. After falling beneath the $7,000-mark last week, the world’s number one cryptocurrency by market cap has managed to add a further $200 to its overall price. While the currency is still below $7,000, it’s about to break this line once again.
Bitcoin Is Heading for the Stars
At the time of writing, BTC is trading for $6,979. Another $20 or so and we’ll be in a whole new range for the third time over the past month. The currency has suffered greatly at the hands of the coronavirus, but while there is still plenty of room to improve, the asset has managed to retain a certain level of resiliency and strength during this crisis.
Want some additional good news? According to many analysts, bitcoin – despite the present conflicts it’s been experiencing – is still the world’s top performing asset for 2020. Stocks have come and gone; precious metals, such as gold, have also taken dips throughout the year, with one ounce of gold falling from about $1,700 to roughly $1,300. In the end, it’s still bitcoin that comes out on top.
Lead Delphi Digital analyst Kevin Kelly explains in a new report:
There are a handful of asset classes boasting positive returns this year, and crypto is one of them. Bitcoin’s latest rebound pushed its year-to-date return into the black as investors continue to digest countless headlines surrounding monetary and fiscal policy responses to COVID-19. We often remind ourselves to take a step back as arbitrary time horizons can muddy or even mislead investors. However, we’d like to quickly point out that bitcoin’s outperforming just about every major asset class over the last 12 months (+40 percent) despite its most recent +50 percent drawdown. Again, time horizons matter.
While things are looking good for BTC in the long run, the report does mention that a few individual assets have surpassed BTC in its gains, even though general markets haven’t. In addition, should stocks ever incur a massive selloff in the coming months, the report suggests heavy correlation between stocks and crypto, claiming that BTC will likely experience the same.
A Couple Little Slips Here and There
The document says:
There are a few subsets of asset classes that have outperformed BTC, like palladium for example, even though precious metals as a group have not… If stocks sell off, it wouldn’t be the first (or the last) time bitcoin follows suit.
For the most part, bitcoin and crypto in general appears to be enticing a lot more investors and new players to the arena. Many are now seeing bitcoin as an asset to try out as fiat proves to be hit-or-miss over these past few weeks, and exchanges are reporting considerably heavier activity and a surge in new accounts.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 8,212.58.
The projected lower bound is: 5,529.71.
The projected closing price is: 6,871.14.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 45.1064. This is not an overbought or oversold reading. The last signal was a buy 34 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.35. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 28 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -72. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 152.680 at 6,908.430. Volume was 62% below average (consolidating) and Bollinger Bands were 43% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,992.51 7,034.28 8,031.87
Volatility: 57 133 82
Volume: 334,376 579,841 233,949
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 14.0% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 14 periods.
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