Bitcoin, the flagship cryptocurrency, has been holding on to the $3,900 level after rising from $3,700, in which it started the year at. It has notably been recovering from a $3,200 low seen last month, and now a technical indicator is “flashing” a buy signal.
According to CryptoCompare data, BTC is trading at $3,900 after rising 0.7% in the last 24-hour period. Its market cap is of $67.9 billion, meaning its share of the cryptocurrency ecosystem is at roughly 51.3%, a decline market by Ethereum's rise and BTC's 1.9% decline in the last 30 days.
Bitcoin's price recovery led to an upward difficulty adjustment of 10% that saw it break away from am months-long downwards trend that was seeing miners shut down their operations to avoid losses.
As CryptoGlobe has been covering various factors point towards bitcoin's price growing. Adoption has been on the rise, so much so that luxurious real state properties are now on sale for the cryptocurrency, and that its layer-two scaling solution, the Lightning Network (LÇN), has an over 500 BTC capacity.
According to Bloomberg, the GTI Vera Convergence Divergence indicator is now suggesting that bitcoin is in “its longest buying streak in six months.” If the current buying pressure persists, the news outlet adds, it could “continue to see a rise in prices” following last year’s decline.
It’s worth noting, however, the technical indicator has, in August of last year, suggested the sell-off was coming to an end. At the time bitcoin was trading around the $6,500 mark, and ended up plummeting to $3,200 months later.
Mati Greenspan, a senior market analyst at eToro, noted that he’s seeing an industry that’s “growing at a very rapid pace” with new projects coming online and hiring at a rapid pace. This, he implied, shows people are “getting more and more involved in the market.”
He was quoted as saying:
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.
Ethereum's Rally Continues
Ethereum’s ether, which recently surged to surpass XRP and become the second-largest cryptocurrency by market cap, has kept on rising in the past few days. So much so that it’s currently trading at $152, up over 80% from its $82 low in December of last year.
Per the publication Mike McGlone, an analyst with Bloomberg Intelligence, noted that an end to “selling related to the booking of taxable losses” could be contributing to the crypto market’s recent gains.
The reduction of that selling is a good reason for the bounce. Now is about the duration of the bounce before resuming what is likely a longer-term bear market.
Most other top cryptocurrencies are in the red, as LTC, XRP, ZEC, and NEO have all seen their value drop in the last 24-hour period. Bitcoin Cash, EOS, and XMR, which recently started being accepted on Fortnite’s merchandise store, are up.