Bitcoin’s Price Moves Higher as Strength Indicator Dips Into Oversold Territory

Bitcoin, the flagship cryptocurrency, is currently seeing its price move up as a strength indicator is currently showing it’s oversold and the outstanding short interest against it reaches a new high.

According to Bloomberg, its GTI Global Strength Indicator on its Galaxy Crypto Index – which tracks major digital assets – is currently flashing oversold. The indicator measures the strength of the price by looking at individual upward and downward movements, as well as closing values.

The news outlet points out that the last three times the index was below its psychological support level of 200, it posted moderate increases over the next few weeks. According to CryptoCompare data, bitcoin’s Relative Strength Index (RSI), a momentum indicator that also measures whether an asset is overbought or oversold, is currently in oversold territory.

Bitcoin's RSI is showing it's oversold

Currently, BTC is trading at about $3,490 after rising 2.8% in the last 24-hour period. In the last 30 days, however, it’s down by 45.6% as it dropped from about $6,500 to a low close to $3,300. Last year, the cryptocurrency hit a near $20,000 all-time high.

A relief rally may set to come in the near future, but a bull run may take some time. Speaking to CryptoGlobe Mati Greenspan, a senior market analyst at eToro, has earlier this month revealed the $3,500-$3,000 area is seen as a support for the cryptocurrency, and that he won’t be surprised if its price dips below it before bottoming out.

Despite the bear market, which has seen bitcoin’s hashrate fall by 31% since the start of November, the space is still developing. As covered, its second-layer solution, the Lightning Network, has grown 300% in the last month.

Recently, it was revealed that 1,500 restaurants in Denmark have restarted accepting bitcoin payments, as worldwide BTC adoption keeps on growing. Reports have, in fact, suggested over 13,000 venues accept the cryptocurrency.

Altcoins Keep Rising

Bitcoin isn’t the only cryptocurrency moving higher, as altcoins have kept on rising in the past 24 hours. Ethereum’s ether and XRP, the two other biggest cryptos by market cap, are up by 4% and 3% respectively, as they’re trading at $91.4 and $0.30.

Litecoin, the silver to bitcoin’s gold, has risen 4.3% in said period, to trade at $24.85, while BCH is up 0.8% to $97.9. Privacy-centric cryptocurrencies Zcash and XMR are both up by over 4%, while TRX is up 3.7%.

The best performing altcoin so far appears to be Waves which is notably up 23.1%. Recently, its platform celebrated reaching one million wallets, and saw the launch of a 1 million Waves initiative for game developers. Binance’s BNB and NEO are also performing well, as they’re up roughly 8%.