Chart of the Day - Tuesday, November 24th, 2020

Today's Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). It's a chart of Bitcoin over the past 4.5 years. In mid-October, we highlighted the fact that Bitcoin was breaking out of a multi-year consolidation within a strong uptrend. Here we are just over a month later and Bitcoin has nearly doubled. It's currently testing all-time highs around $19k and is roughly 65% above its 200-day moving average. While this seems over-extended, Andrew reminds us that it's nowhere near an extreme for Bitcoin. In a comment to The Chart Report, Andrew Said, "Prior rallies have become much more stretched than this one, and it's not even a close comparison. At the height of Bitcoin Mania in 2017, price was about 280% extended. Also, rallies in 2011 and 2013 got as much as 1,200% and 700% extended. This doesn't mean Bitcoin will shoot to the moon until it's 600% extended but it does give some context to this rally."