Bitcoin Vs. Tech Stocks: A Relative Strength Comparison

There are many ways to measure the performance of your Bitcoin trading system’s results. When you measure the relative strength (RS) of Bitcoin vs. tech stocks or other cryptos and key financial markets, you obtain a real-world view of its comparative strength (or weakness). This data can help you make important investment decisions. It can even help you forecast major reversals, allowing you to get a jump on other investors.

This article will show you the RS of Bitcoin vs. tech stocks (ticker: QQQ, the Nasdaq 100 tracking stock) over six key time periods. You’ll see how BTCUSD fared against QQQ during the past 3-, 6-, 12-, 24- and 36-month periods. You’ll also see how the king of coins dramatically outperformed QQQ over the past five years. Any market that can outperform a stock index containing the likes of Apple, Netflix, Amazon, and Google is a market to respect. In Bitcoin’s case, it’s been trouncing those particular tech-index giants for the past five years.

Bitcoin vs. Tech Stocks: Key RS Metrics

The Bitcoin (BTCUSD) vs. QQQ RS stats since December 2017’s all-time-high (ATH) are clearly stacked in favor of QQQ. At least right now. All seasoned traders know that markets can change direction in a flash, rendering even the best-researched forecasts useless. However, both BTCUSD and QQQ are in technical bear markets now. Additionally, QQQ’s monthly chart looks especially scary to some market technicians. Many are calling for even lower lows in tech stocks in 2019.

BTCUSD’s timing forecast charts suggest that January 2019 could see a major rally erupt from a series of simultaneous cycle lows. In contrast, QQQ’s cycle charts suggest a potential bullish reversal far later, sometime in late Q1 or even Q2 of 2019.

Near-Term Stats (One Year or Less)

3-month BTCUSD performance: (44.60) percent

3-month QQQ performance: (17.64) percent

RS ratio of 2.53 to 1 in favor of QQQ

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