Bitcoin: Technical Indicator Suggests Upcoming Short-Term Rally as Price Stabilizes Around $3,600

A technical indicator suggests bitcoin may be about to see a short-term rally. This, at a time in which its price appears to be stabilizing around the $3,600 mark, which it has been hovering around since January 11.

According to CryptoCompare data, bitcoin is currently trading at $3,600 after rising 0.66% in the last 24-hour period, and its market cap is at $63 billion. The cryptocurrency, after falling from the around $4,000 mark earlier this month, has been trading between the $3,500 and $3,800 range.

Bitcoin's price performance in the last 30 days

Bloomberg reports, however, that the GTI Global Strength Technical Indicator is “nearing oversold levels, clocking in at 35.6.” This, the news outlet claims, is the lowest level it’s been since December, and it also suggests the cryptocurrency has a “clear support” at $3,000 to $3,100.

Back in December, bitcoin hit a low of $3,200 before its price started climbing back up. The cryptocurrency hit its low after falling from a near $20,000 all-time high a year earlier. Bloomberg added that BTC breached “its lower VERA band limit today, but rocketed back to trade just above the limit.”

Per the news outlet, the GRI VERA Trend Signals Indicator helps identify trends, and is now implying bitcoin may soon see a short-term rally. The indicator’s suggestion comes shortly after Nasdaq’s CEO called crypto a “tremendous demonstration of genius and creativity,” and after a working paper from the Bank of International Settlements (BIS) leveled criticisms against BTC’s proof-of-work (PoW).

In the last few weeks bitcoin has seen its price jump and subsequently plunge in short amounts of time, forming patterns users on social media have called the “Bart” and the “Inverted Bart” over the similarity these have to the Simpsons’ character.

Other top cryptocurrencies have surprisingly been outperforming bitcoin. While BTC is down by about 14.1% in the last 30 days, the MVIS CryptoCompare Digital Assets 100 Index, a market cap-weighted index that tracks the price of the top 100 cryptocurrencies, shows these are down 11.8%.

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This is presumably related to Binance’s sale of the TRON-based BitTorrent Token (BTT), which is set to reward TRX holders. Litecoin has also seen its price rise over reaching the 100 LTC Lightning Network (LN) nodes milestone.

At press time, most top cryptocurrencies are up, with Ether rising 1.1% in the last 24-hour period, and EOS 4.1%. While XRP and ZEC have risen less than 1% in said period, Litecoin is up 3.7%, and BCH 6.7%.