The Bloomberg Galaxy Crypto Index, based on the GTI Global Strength Indicator, sparked a new buy crypto signal after a 13 percent rise since last Tuesday, the first in a month for the index, comparing upward and downward movements of successive closing rates.
However, the indicator is still in oversold territory — usually perceived as a counter-signal — which indicates that it might be due to a bounce. After a volatile November that saw prices come under pressure after China took steps to crack down on space, cryptocurrencies are on the rebound. Yet, according to Ed Moya, senior market analyst at Oanda, the overall market is beginning to show signs of stabilization.
Much of this is due to some fatigue with the bearish run we’ve seen,” Moya said by telephone. “The’re is still overall cryptocurrencies demand.
On Monday, its second consecutive day of gains, the Bloomberg Galaxy Crypto Index increased by as much as 4.7 percent. Also up were Bitcoin and Ether, the two biggest shares, jumping up to 6.7% and 5.3% respectively. Ether’s rally helped push it through the year into positive territory.
The analysis for the buy crypto signal:
After dropping to as low as $6,410 across major platforms for cryptocurrency trading, the bitcoin price has bounced back to $7,200.
But BTC’s short-term outlook remains gloomy as it is expected to raise selling pressure. A technical analyst and investor known as Dave the Wave sees $100,000 as Bitcoin’s long-term goal.
The analysis comes after BTC forecast correctly to bottom out in the short-term in the mid-$6,000s.
Dave Bitcoin price chart’s technical analysis dates back to 2011 when BTC traded for less than $1. Since then, the price of bitcoin has shown a parabolic change as its value has increased exponentially.
Over the past eight years, the same parabolic line has stayed intact as BTC rebounded strongly.
High-profile investors such as Tim Draper, Tom Lee, and Brian Kelly announced long-term goals of for $250,000 over the next three years recently.
The Hashrate is increasing:
Blockchain.com Bitcoin blockchain explorer data shows that the Bitcoin network hashrate is back at an all-time high.
The steady increase in bitcoin’s hashrate across 2019 in what was a challenging year for miners shows their trust in BTC’s long-term trajectory. This gives trust for traders to buy crypto.
Recently market moves:
In the final month of December, newly emerging custodians and strictly regulated platforms like Bakkt registered record high volumes.
The proliferation of new cryptocurrency infrastructure providers would allow the asset class to reach a wider investor base including long-term accredited and institutional investors.
Finally, as an asset with a fixed supply limit of 21 million, any situation that in any way influences its scarcity is likely to have a significant effect on its price over time.
Investors are anticipating the block reward halving in May 2020, particularly in the last few months of 2019, as it reduces the rate at which new BTC is produced.