Bitcoin price analysis: BTC is more profitable than stock indices in the first three months of 2019

  • BTC/USD struggles to stay above $5,000.
  • Bitcoin investments are more profitable than stock markets.

BTC/USD recovered from Monday’s low of $4,948 to trade at the $5,054 level at the time of writing. Having returned above $5,000, BTC mitigated immediate bearish risks, though the upside potential remains limited as the recovery failed to gain traction so far. BTC/USD is down 2% on a day-on-day basis and mostly unchanged since the beginning of Tuesday.

What’s going on?

Bitcoin turned out to be more profitable that the stock exchange in 2019. Since January, the first cryptocurrency gained over 40% which is higher than the profitability of major stock indices in the same period. According to an investor and writer Charlie Bilello, Bitcoin left behind Nasdaq 100 и S&P 500 as well as gold and Treasuries.

Interestingly, that this happened amid a major stock markets rally touted by traders and analysts of the traditional assets. This performance confirms the theory that the cryptocurrency market benefits from risk appetites stimulated by loose monetary policy of major central banks.

Bitcoin’s technical picture

From the long point of view, BTC/USD remains capped by $5,100. This barrier is created by a combination of SMA50 and SMA100 (1-hour chart). Once it is cleared, the recovery may be extended towards $5,140-50 (SMA200 1-hour and SMA50 4-hour)

On the downside, the nearest support is cleared the psychological $5,000, strengthened by the lower boundary of the recent short-term upside channel, while a sustainable move below $4,550 (DMA200) will negate the bullish outlook.

BTC/USD, 1H chart. 

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