INTERNATIONAL – After a punishing year, cryptocurrency enthusiasts looking for a fresh start in 2019 are being greeted by some positive technical signals.
The GTI Vera Convergence Divergence indicator is suggesting Bitcoin is in its longest buying streak in six months. Should buying pressure persist as it has over the past 13 days, Bitcoin could continue to see a rise in prices following last year’s 74 percent decline, the measure predicts.
“Usually the best thing to do is to buy low and sell high. So if we are going by technical analysis we can very easily see on the chart that we are much closer to the bottom than we are to the top,” said Mati Greenspan, senior market analyst at eToro in Tel Aviv.
“I’m seeing an industry that is growing at a very rapid pace right now where we see companies that are involved in Bitcoin and blockchain hiring at a rapid rate,” Greenspan said. “We see new projects coming online. We see all kind of indication that people are getting more and more involved in the market.”
Similarly, the Bloomberg Galaxy Crypto Index, which tracks some of the largest cryptocurrencies, is in its longest “buy streak” since its September rally, with Ether, its third-largest member, leading gains.
The index was up as much as 10 percent Wednesday, and Ether rose more than 11 percent. The token is up more than 80 percent since mid-December, when it hit an all-time low.
The end of selling related to the booking of taxable losses could be contributing to Wednesday’s bounce, said Mike McGlone, an analyst with Bloomberg Intelligence. “The reduction of that selling is a good reason for the bounce,” he said. “Now is about the duration of the bounce before resuming what is likely a longer-term bear market.”