SAMT Blog
Bitcoin: some thougths
01. July 2019, by Mario V. Guffanti
Technical Analysis
One of the activities that technical analysts do to find new correlations between markets is to compare price charts of different financial assets. A graphical and visual comparison between curves allows you to detect similarities rather quickly. The same exercise could also be conducted in a quantitative way with a comparison of two series of market data through a correlation index, but it does not always work if the two series to be compared have two different time horizons. I would like to propose to your eye the graph below consisting of two curves of two activities present in the financial world.
As you can see, the curves are quite similar. The curve in box 1 represents the graph of gold in dollars starting from 1971, the year in which Nixon abrogated the convertibility of gold into dollars.
The chart in box 2 represents the Bitcoin/Us Dollar Fx Spot Rate taken from the Refinitiv platform from 2012.
What is the significance of a similarity of two price curves over two different time horizons (Bitcoin 2012-2019) and Gold (1971-2019)?
Scientifi...
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