Chart of the Day - Tuesday, February 20, 2024

🏆 Today’s Chart of the Day was shared by Jason Perz (@JasonP138).

• Bitcoin is currently trading at a two-year high of around $52k. It’s still down -23% from its peak, but there’s virtually no resistance preventing it from testing record highs.

• Jason points out that Bitcoin has been a solid leading indicator in recent years. It’s one of the most speculative assets out there, so its performance can tell us a lot about risk appetite and the broader market environment.

• This was especially true last year when it wasn’t as clear that we were in a new bull market. While many smart people warned of a recession, this speculative internet token steadily chugged higher, suggesting the economy was fine.

• The takeaway: Bitcoin could realistically test record highs in the coming weeks after clearing every major resistance level recently. It has been a solid leading indicator and continues to scream “risk-on.”