Bitcoin is obviously to complete 2019 into some positive note and substantially outperform traditional assets such as gold and stocks.
The number one cryptocurrency is currently trading at $1,125, representing a 93 percent gain on a year-to-date basis, according to CoinDesk’s Bitcoin Price Index.
Prices increased from $3,700 to $13,880 in the initial six months likely on the trunk of halving narrative (a supply cut since in May 2020). Facebook’s launch of cryptocurrency Libra in June further fostered purchasing.
The frenzy, however, ended at another quarter with fear gripping the market which Libra may quickly monitor strict regulation into the entire crypto market. The sell-off was emphasized by miners boosting their bitcoin benefits in the past quarter, as noted by crypto market analyst Willy Woo.
At media interval, bitcoin is reporting a 48 percent decrease from the large of 13,880 found in the end of June. Prices struck seven-month lows under $6,500 earlier this week.
Despite the H2 downturn, bitcoin’s full-year performance is optimistic, as mentioned before, and the cryptocurrency is outperforming gold and S&P 500 in a massive way.
Gold, a classic harbor advantage, is currently trading at $1,477 percentage — upwards 15 percent on a year-to-date base. Meanwhile, the S&P 500 index, a benchmark for risk assets around the entire world, is reporting a 28 percent gain for 2019. That its the biggest yearly gain since 1997.
Both assets likely gained from the U.S. Federal Reserve monetary easing. The central bank delivered three 25-basis-point speed of interest discounts in the second half, and it’s expanded its balance sheet by higher in contrast to 300 billion since mid-September.
While bitcoin’s 93-percent yearly gain appears shocking in contrast to traditional markets, the number seems slightly less spectacular when we take into account the cryptocurrency’s historical performance.
Bitcoin has released earnings (green candles) in six years between 2011 and 2019.
The cryptocurrency rallied nearly — by 5 ),428 percent and 1,336 percent — in 2013 and 2017, respectively. Further, it gained 189 percent in 2012 and 124 percent in 2016.
This year 93 percent yearly gain is really the second-lowest on record, with the lowest growth of 34 percent being registered 2015.
That said, bitcoin could wind 2019 larger, as the brief term charts are indicating scope to get a move to immunity at $2,870.
Bitcoin has charted a series of lower highs and lower highs because July. The last lower at $7,870 was printed on Nov. 29. A UTC close above that sum must confirm a short-term bearish-to-bullish style change.
Bitcoin can grow for the amount in another couple of times, because the 14-day relative strength index (RSI) has diverged in favor of the bulls. A bullish divergence occurs when an indicator prints higher drops, contradicting lower extremities on price, and is considered as an early warning of an impending corrective bounce.
Additionally, Wednesday’s big bullish engulfing candle is indicating vendor tiredness.
Disclosure: The author currently retains no digital assets.
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