Bitcoin Trading Outperforms Stocks Despite Range-Bound Momentum

[sisamee]

Bitcoin Trumps Stocks Again
A recent discussion on CNBC paints an interesting future for cryptocurrencies. By comparing the stock market with Bitcoin, the latter clearly wins in the performance department. The lack of massive volatility is doing the world’s leading cryptocurrency some favors, for a change. Analyst Jeff Kilburg confirms a price near or above $6,250 is a good buy opportunity.

Although the discussion pertains to CBOE futures, parallels can be drawn with the live markets. It appears Bitcoin is poised to rise in value, yet no uptrend is materializing. An eventual push to $6,750 will get traders some nice profits, assuming the trend does not turn bearish. Kilburg seems confident that a rise will happen sooner or later.

To err on the side of caution, a dip below $6,250 can be concerning. It can, according to Kilburg, easily trigger a downtrend to $6,000 and potentially lower. Playing the “range” between $6,000 and $6,500 seems to be the best course of action at this time. This “sideways trading” trend of Bitcoin may not necessarily end soon either. It is outperforming stocks, but so are a lot of other markets.

Gold Slightly Outperforms Bitcoin
A $25 price increase per bitcoin is not a big deal. It shows positive momentum, but speculators are looking for much bigger scores. The price of gold has increased by roughly $30 in the same period. This seems to indicate both gold and Bitcoin follow very similar paths once again. That is what usually happens when stocks go through a dip.

Making sense of these trends is not straightforward. Depending on one’s appetite for risk, going long or short seems rather risky at this point. Bitcoin’s price hasn’t budged all that much for weeks now. As long as $6,000 continues to act as support, there is no reason to be overly concerned yet. Short-term changes do not appear imminent at this stage.

One thing to take away from all of this is how all markets are in an interesting state. Playing the proverbial range will yield the best results, for the time being. Traders are seemingly not interested in either Bitcoin or gold as an alternative strategy for stocks. That situation may still change depending on what happens today and early next week.

source: https://www.livebitcoinnews.com/bitcoin-trading-outperforms-stocks-despite-range-bound-momentum/