The GTI Global Strength Technical Indicator for Bitcoin is suggesting that Bitcoin’s price could be stabilizing and could even be heading towards a short-term rally, Bloomberg reported on January 22, 2019.
Bitcoin’s Price Approaches Oversold
Despite the overwhelmingly negative predictions made about the cryptocurrency market, it seems that the new year has some much-needed stabilization to the troubled sector.
According to Bloomberg, Bitcoin’s price is slowly stabilizing and could even be heading towards a short-term rally. The report cited the GTI Global Strength Technical Indicator, which showed that Bitcoin is nearing oversold levels – clocking in at 35.6.
The numbers are the lowest the cryptocurrency has seen since December, as Bitcoin now appears to be stabilizing at around $3,500. The measure also suggested that the coin had clear support at $3,000 to $3,100.
According to the GRI VERA Trend Signals indicator, which helps identify trends in trading, Bitcoin breached its lower VERA band limit on January 22, 2019 – a behavior that implies an upcoming short-term rally.
All of this indicates that the bullish pressure on the market has finally come to an end and that the sellers are now taking over.
Market Optimism Now Prevalent
The latest data has brought new hope to the troubled market, as traders and investors alike have grown tired of the crypto winter that has raged since November 2018.
The predictions made by the GTI Global Strength Indicator and the GRI VERA Trend Signals indicators have already caused a minor stir in the crypto community. Many are waiting for Bitcoin to regain its former strength, as it lost more than 70 percent of its value in 2018 alone.
While it’s hard to say whether the world’s largest cryptocurrency will ever reach its all-time high of just under $20,000, the slow growth is seen as an indicator of stabilization. However, it also shows that investors are still cautious about the entire industry as a whole, and are reluctant to jump into the market.
Many large financial institutions have announced significant investments in crypto during 2018, but we are yet to see any banks and funds actually putting money into the industry. It’s obvious that the market is still recovering from the significant corrections it experienced in the past months.
Once Bitcoin’s price rallies above the January 14 highs, when it traded for $3,800, the market can be sure that it’s trajectory will only be going upwards.