Bitcoin’s strong and stable performances in 2019 have been undeniable. As the cryptocurrency’s returns continue to outperform gains seen in traditional market stalwarts (i.e. gold, silver, and the S&P 500), many traders are making comparisons to its relative strength within the market.
A recent tweet from crypto analyst @BitcoinEcon has raised some key questions for traders with respect to Bitcoin’s relative position in the market.
Traditional Asset Comparisons
Essentially, the trader’s chart analyzes the profit probabilities of various returns generated by gold, silver, and the S&P 500. These returns are then placed within comparative timeframes that allow traders to see the average investment durations that might be required in order to see similar trading results across each asset class:
Which asset would you want to own after taking a look at this chart?
Bitcoin, the S&P 500 or Silver & Gold? pic.twitter.com/QhmjU3XHgb
— BitcoinEconomics.io (@BitcoinEcon) September 14, 2019
Bitcoin Outperforms Majors
Recent market moves support the outlook at the bullish trend for cryptocurrency is set to continue. Long term charts in the BTC/USD pair indicate continued upside, as prices have made a clear break above the Ichimoku Cloud on the weekly price history. Despite rallies of more than 177% on a year-to-date basis, BTC/USD valuations currently remain 47% below their all-time highs:
As a traditional safe haven, gold prices have made impressive rallies of 17% this year. However, this performance trails returns generated in BTC/USD long positions by a wide margin and indicator readings in the Commodity Channel Index suggest gold is now trading in overbought territory: