In December 2018, the mainstream media proclaimed the death of bitcoin (BTC/USD) for the millionth time. At that point, the first cryptocurrency dropped by as much as 84% from the all-time high of around $20,000 as the price plunged below mining costs. The bearish sentiment was so strong that almost no one dared to long the digital asset. Those who did, however, have been handsomely rewarded because bitcoin is 2019’s best-performing asset globally.
BITCOIN OUTPERFORMS OTHER ASSETS BY A HUGE MARGIN
It may come as a shock to you but bitcoin is way ahead of any asset in terms of this year’s returns. As of this writing, it is up by more than 67% on Coinbase year-to-date. Coming in at No. 2 is oil (USOIL), up by 38.35%. The other investable assets in the green this year are the Nasdaq 100 (through the QQQ ETF), small caps (through the IWM ETF), and S&P 500 (through the SPY ETF). These investment vehicles are up by 22.25%, 18.17%, and 16.54% percent, respectively. On the other hand, gold (GLD), which is considered as a safe store of value, is down by 0.12%.
Bitcoin’s recovery comes at a time when global markets appear to be in turmoil. The uncertainty is further intensified as China threatens to come up with severe retaliatory measures in response to the significant tariff bump by the White House. Fundstrat Co-Founder Thomas Lee recently took to Twitter to show how BTC is unaffected by these developments. He applauded the rise of bitcoin in spite of tense global market conditions:
In a period where:
—political tensions escalate between US and China,
—global equity markets fall sharply
—VIX largest spike in many months
—global yield curves flatten/invert#bitcoin has RISEN and >$6,000
Crypto showing its value as an uncorrelated asset.
— Thomas Lee (@fundstrat) May 9, 2019
Even more impressive, bitcoin is not just buckling under the sharp declines of global markets. The cryptocurrency also appears to be shrugging off bad developments within the crypto community. Crypto-enthusiast Alex Kruger was able to notice this pattern.
— Alex Krüger (@krugermacro) May 8, 2019
Bitcoin is still rising even after three negative developments. It appears to be in the midst of a massive disbelief rally. An in-depth analysis shows that this digital currency has more gas left in the tank.
BITCOIN TARGETING $7,800 IN THE NEAR TERM
Bitcoin looks to mock the shorters and the non-believers as the cryptocurrency continues to push higher despite overheated technical signals. Daily volume and RSI may be flashing bearish divergences yet bitcoin remains strong. It is now threatening to breach heavy resistance of $6,200 on Coinbase.
Nevertheless, bulls have the pending golden cross between the 100-day moving average (MA) and the 200-day MA on their side. A confirmed cross can be the technical catalyst that keeps BTC above $6,200. Above this resistance, the next logical target is $7,800.
Bitcoin is 2019’s top performing asset, significantly edging traditional assets like oil, the Nasdaq, and the S&P 500. The cryptocurrency’s trend is so strong that it defies negative developments in the legacy markets as well as within the crypto community. Don’t wait for bitcoin to hit $7,800 before you start considering it as an investment.