The price of Bitcoin (BTC) may finally be moving in the right direction after not hitting a new low since mid-December, and at least one technical indicator suggests a short-term rally may be in our future.
According to a recent report by Bloomberg, Bitcoin’s GTI Global Strength Indicator, a measure of upward and downward movements of successive closing prices, is nearing oversold levels and recently fell below 35.6 — its lowest level since mid-December.
According to the report, the GSI shows clear support around the $3,000 and $3,500 levels, suggesting Bitcoin may have experienced at least a short-term bottom in mid-December.
Bloomberg’s report also notes that Bitcoin briefly breached its lower VERA band on Tuesday (when it fell below $3,500) before rocketing back above the lower bound. According to the analyst, this type of movement indicates a short-term rally is likely in the near future.
Bitcoin is currently trading up 1.9% on the day to $3,607, bringing the digital currency to a $63.1 billion market cap.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.