Bitcoin could be gearing up for a short-term rally

Bitcoin’s price appears to be stabilizing, and the digital currency may even be gearing up for a short-term rally, technical indicators show.

The GTI Global Strength Technical Indicator for Bitcoin is nearing oversold levels, clocking in at 35.6. That’s the lowest level since December. Bitcoin appears to be stabilizing around $3,500, with clear support at $3,000 to $3,100, the measure suggests.

The world’s largest cryptocurrency also breached its lower VERA band limit today, but rocketed back to trade just above the limit. The GRI VERA Trend Signals indicator helps identify trends, and this behaviour implies an upcoming short-term rally.

The indicators are notable as investors are looking for signs of hope after Bitcoin tanked some 70 percent last year, and continues to grind lower. Worried about volatility, many regular investors remain wary of crypto market.

Greater stability in Bitcoin’s price could entice them to return, and for more institutional investors to give this market another look.

 

Bloomberg 23 January 2019

David