Intermarket Analysis of Bitcoin and Major Bitcoin Miners1st we should look at the definition of Intermarket Analysis:
Intermarket analysis is a method of analyzing markets by examining the correlations between different asset classes. In other words, what happens in one market could, and probably does, affect other markets, so a study of the relationship(s) could prove to be beneficial to the trader.(Investopedia)
Instead of looking at financial markets or asset classes on an individual basis, intermarket analysis looks at several strongly correlated markets, or asset classes, such as stocks, bonds, currencies, and commodities. This type of analysis expands on simply looking at each individual market or asset in isolation by also looking at other markets or assets that have a strong relationship to the market or asset being considered.(investopedia)
Intermarket analysis should be considered fundamental analysis in that it relies more on relationships to provide a general sense of direction, but, it is often classified as a branch of technical analysis. There are different approaches to intermarket analysis, including mechanical and rule-based.(investopedia)
After talking about the definition of Intermarket analysis, let’s see how Bitcoin rallies affect the stocks price of the major North American Bitcoin miners Marathon Patent Group (MARA) and RIOT Blockchain.
This bullish rally started on March 13th , 2020. So far Bitcoin scored from 3850 to 46000 and rewarded the investor astronomical return. But if you look at the return of MARA and RIOT, all of a sudden you will noticed that the very similar correlation exists between Gold price and Gold miners stocks is present between Bitcoin and Bitcoin miners stock price.
I published many articles about this in the last 4 months, when Bitcoin was 12400, I predict the sharp move, and asked people to invest in Bitcoin instead of trading it for the next 2 years..!
Any time we had a correction, I said don’t panic.
But at the very same time, I published my view on RIOT and MARA, and wrote that if there is going to be a Bullish rally, miners will win the race!
Now you can see that how true it is. Don’t ignore this correlation..!
Moshkelgosha (SniperTrader)
