Bitcoin Reachs 200 day moving average, bull case for BTC strengthened
January 29, 2020
One of the biggest asset class surprises last year was the 92% gain in Bitcoin (BTC). Twelve months ago, few besides our shop would have credited such an outcome. So far in 2020 the cryptocurrency is continuing to roar ahead.
Though it’s early in the year, BTC is up 26% YTD, already the best showing of any major asset class, and building on that big 2019 move. The case for owning Bitcoin has strengthened even since the start of the year, as two additional tailwinds recently emerged (see below), bringing to five the positive convergences I envision for BTC this year.
The list of positives for Bitcoin are rising in 2020.
1 The coronavirus outbreak, and the associated uncertainty both in terms of disease spread and of economic impact is increasing demand for “safe haven” assets. Thus, gold and Bitcoin are both up sharply since then. In fact, Bitcoin’s correlation to the S&P 500 has flipped in the last 3 months from +13% to -10%—a pretty meaningful swing.
2 On 1/27/2020, BTC traded above its 200-day moving average for the first time since October 2019. I believe that moving above the 200-day is validating that Bitcoin is back in a “bull market.” The data supports this. Since 2010, when Bitcoin is above ...Reports you may have missed
Over Friday and Saturday last week, Avalanche Labs put on their second edition of ‘Avalanche House’ in Brooklyn (with the first one in Berlin). The team attended Friday afternoon’s session as outlined below and shared the following notes and perspectives from the panelists. FIGURE: AVALANCHE HOUSE PANELIST SESSIONSTRATEGIC FUNDRAISING DURING A BEAR MARKET _Lydia Chiu (Ava Labs), Tom Schmidt (Dragonfly Capital), Nina Bambysheva (Forbes), Travis Scher (North Island Ventures)__ _The...
We are writing to update our clients on the events of this past weekend and highlight a few data points we will be keeping an eye on moving forward into the next couple of weeks. On Friday, December 3rd, over $2 billion in long positions across the global crypto market were liquidated, nearly $850 million of which were from BTC futures.Almost $500 billion in total market value was wiped from the...
As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average: >200D, 6M forward return +193% <200D, 6M forward return +10% You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum. _STRATEGY: BUY BITCOIN OR BUY CRYPTO EQUITIES_ The associated action for Rule #3 is simple. - go long _WHY IS THIS...
Articles Read 1/1
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In fa652c-459696-707ee5-0d985b-f8b3cb
Already have an account? Sign In fa652c-459696-707ee5-0d985b-f8b3cb
