Cryptocurrency enthusiasts may have a reason to rejoice as the technicals are flashing a buy signal according to a technical analyst at Bloomberg.
Positive signs from market technicals could mark the beginning of a new crypto bull run.
The GTI Vera Convergence Divergence indicator shows that Bitcoin is currently in its longest buying streak of six months.
What to Make of the Technicals?
The indicator shows that buying pressure has persisted over the past 13 days in Bitcoin and if it continues at this pace, the price of BTC could continue to rise.
eToro’s senior market analyst at Tel Aviv Mati Greenspan said to Bloomberg:
“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.”
Greenspan further noted that he is seeing a crypto industry that is growing rapidly and the companies in this space are also hiring at an increased rate.
New projects are coming online, and there are many indications of people getting “more and more involved in the market,” he states.
Another Index Shows Positive Signals
The Bloomberg Galaxy Crypto Index, which tracks the large-cap cryptos, also shows a section of the market in its longest “buy streak” since September.
Bloomberg’s index moved up by 10% on Wednesday with Ethereum leading the gains. Ethereum rose by 11% on the same day, showing an 80% upward movement since its Mid-December lows.
Wednesday’s crypto bounce could be the result of booking taxable losses, as noted by Bloomberg Intelligence analyst Mike McGlone. He said that the reduction in selling could be responsible for crypto’s bounce back, adding that:
“Now is about the duration of the bounce before resuming what is likely a longer-term bear market.”