Chart of the Day - Monday, August 9th, 2021

Today’s Chart of the Day was shared by Fundstrat (@fundstrat). It's a chart of Bitcoin over the past 2-years with its 200-day moving average in red. Bitcoin reclaimed its 200-day moving average today, after being stuck below it for nearly three months. FundStrat points out that Bitcoin tends to perform much better when it's above its 200-day rather than below it. When Bitcoin is trading above its 200-day, 6-month forward returns we're around 193%, versus just 10% when it was below its 200-day (according to data from 2010-2020). Clearly, the trend is your friend when it comes to Bitcoin. And right now, the trend appears to be in the process of resolving higher after a necessary pause.